Eighth Series, Vol. II, No. 10 Saturday.

Marcb 23, 1985

Cbaitra 2, 1907 (Saka)

LOK SABHA DEBATES

(English Version)

Second Session
(Eighth Lok Sabba)

(Vol. II contains Nos. 1 to 10)

LOK SABRA SECRETARIAT

NEW DELHI
price I Rs. 4.00
 , l~ I
, ')
",
~

,
, ,
" '~:>,,',:'
,.j: ;,

, i' ,
, l~' I, ' , ' '"
• "i' -, , ,I" " :,'

I"': ','
- ,,', , I: .

, ,
 CO'NTENTS

No. }O Saturday, Mllrch 23, 1985/Chaitra 2, 1907 (Saka)

CoLUMNS

Papers Laid on the Table 1-2

Business of the House 2-5
National Security (Amendment) Bill, 1985- S

Introduced

General Budget, 1985-86-General Discussion 5-162

And
Supplementary Demands for Grants (Gencral), 1984-85

Shri Manoj Panday 5-7

Shri Atish Chandra Sinha 7-11
Shri Indrajit Gupta 11-21

Shri Y.S. Mahajan 21-25

Shri Vakkom Purushothaman 25-29
Shri R. Anna Nambi 29-32
Shri K.J. Abbasi 32-34
Prof. Nirmala Kumari Shaktawat 34-38

Shri Amal Datta 38-44

Shri Jagannath Rao 44-48

Shri K. Pradhani 48-50
Shri Tariq Anwar SO-53
Shri Abdul Rashid Kabuli 53-58
Shrimati Basava Rajeshwari 58-62

Sbri Pr*~p Bhanu ~ 62-66

. .'
-
 COLUMNS
Shri Raj Kumar Rai 66-69

Shri Rameshwar Neekhra 69-74

Shri C. Janga Reddy 74-79

Begum Abida Ahmed 79-83

Kumari D.K. Thara Devi 83-86

Shri C. Sambu 86-90

Shri Mukul Wasnik 90-94

Shri lanardhana Poojary 94-103

Shri Kadambur Janarthanan 104-106

Shri Tarun Kanti Ghosh 106-108

Shri Amar Roy Pradhan 108-111

Shri Bharat Singh 111-114

Shri P.A. Antony 114-116

Shrimati Madhuri Singh 116-118

Shri K. Ramachandra Reddy. 118-120

Shrimati Kesharbhai Kshirsagar 120-123

Shri Dharam Pal Singh Malik 123-125
Shri Mohd. Ayub Khan 125-127
Shri S.B. Sidnal 127-130
Shri V. Sobhanadreeswara Rao 131-132
Shri C.K. Kuppuswamy 132-135
Shri R. leevarathinam 136-138
Shri Madan Pandey 138-140
Shrimati Sundarwati Na wal Prabhakar 140-143
Prof. Saifuddin Soz 143-145
Shri ,Ram Samujhawan 14S-147
 (iii)

COLUMNS

Shri Chandra Shekhar Tripathi 147-149

Shri Ram Pujan Patel 149-152
Shri Ramashray Prasad Singh 152-153
Shri Harihar Soren 153-156

Shri Asutosh Law 156-158

Shri H.A. Dora 158-160

Shri A. Charles 160-162

 LOK SABHA DEBATES
1
LOK SABHA
Saturday, March 231 1985/Chaitra 2, 1907
(SAKA)
The Lok Sabha met at Eleven of the Clock
[MR. DEPUTY-SPEAKER in the Chair]
MR. DEPUTY-SPEAKER : Papers to
be laid on the Table. Mr. Poojary.
PAPERS LAID ON THE TABLE
[English]
Notifications under Customs Act 1962 and
Central Excise Rules, 1944
THE MINISTER OF STATE IN THE
MINISTRY OF FINANCE (SHRI JANAR-
DHANA POOJAR Y): I beg to lay on the
Table-
(1) A copy each of Notification Nos.
G.S.R. 155 (E) to 211 (E) (Hindi
and English versions) published in
Gazette of India dated the 17th
March, 1985 together with an expla-
natory memorandum regarding
Customs Duty changes and exemp·
tions in the context of Budget
proposals pertaining to Indirect
Taxes announced by the Finance
Minister in Lok Sabha On the 16th
March, 1985, under section 159 of
the Customs Act, 1962. [Placed in
Library. See No. L T -561/85J,
(2) A copy each of Notification Nos.
O.S.R. 212 (E) to 281 (E) (Hindi
and English versions) published in
Gazette of India dated the 17th
March, 1985 together with an
explanatory memorandum regarding
Central Excise Duty changes and
exemptions in the context of Budget
proposals pertaining to Indirect
Taxes announced by the Finance
2
Minister in Lok Sabba on the 16th
March, 1985, issued under the
Central Excise Rules, 1944. [PJaced
in Library. See No. LT-562/85].
11.01 hrs.
BUSINESS OF THE HOUSE
[English)
THE MINISTER OF STATE IN THE
MINISTRY OF PARLIAMENTARY
AFFA1RS (SHRI GHVLAM NABI AZAD) :
Sir, with your permission, I rise to announce
that Government BUSiness in this House
during the week commencing 25tb MarchI
1985, will consist of:
(1) Consideration of any item of
Government Business carried over
from today's Order Paper.
(2) Consideration of a Resolution seek-
ing approval of continuance or
President's Rule in the State of
Punjab.
(3) General discussion on the PUnjab
Budget for 1985-86.
(4) Discussion and voting on ;
(a) Demands for Grants on
Account (Punjab) for 1985·86.
(b) Supplementary Demands for
Grants (Puojab) for 1984-85.
(5) Consideration and passing of the
National Security (Amendment)
Bill, 1985.
(6) Further discussion OD the Report
of the National Transport Policy.
(7) Discussion on the Resolutions seek-
ing disapproval or the followina
Ordinances together with considera-
tion and passing or the Bills. as
passed by Rajya Sabba, replacina
those Ordinances :
3 Business of the House MARCH 23, 1985
[Shrl O""am Nab; AZQd]
(a) The Bhopal Gas Leak Disaster
(Processing of Claims) Ordi-
nance, 1985.
(b) The Requisitioning and Acqui-
sitions of Immovable Property
(Amendment) Ordinance, 1985.
(8) Consideration and passing of the
Handlooms (Reservation of Articles
for Production) Bill, 1985, as pass ..
ed by Rajya Sabba.
(9) Consideration of a motion for con-
curring in tbe recommendation of
Rajya Sabba (or reference of the
Mental Health Bill, 1981, to a Joint
Committee.
(10) Discussion on the 32nd and 33rd
Reports of the Union Public Service
Commission.
SHRI I. RAMA RAI (Kasargod) : Sir,
the following item may be included in the
next week's business : -
The plight of about three lakhs of
employees known as E.D. employees serving
under P & T Department drawing a meagre
amount of Rs. 152 to Rs. 318 as monthly
allowance. They are expected to do hard
work in remote villages and hill areas from
sunrise to sunset. The emoluments they are
getting are not even sufficient for two square
meals a day for the family. Even if some-
body in their family is seriously ill, they
cannot take any leave. Their chances of pro-
motion are very poor. Their plight is no
better than that of bonded labourers and it
is the duty of the Government to redress
their grievances.
It therefore, put forward the following
sUlgestions for tbe consideration of the
Government : -
1. B.D. employees should be consider-
ed at lealt as part-time employees.
2. They should be given a decent
salary considering the e!calatin.
expenses and sky-rocketting prices
of commodities and the naturo of
their bard and hectic work.
l. Promotion opportunity be provided.
4. There 8bou'4 be proviliop for lea vee
Business of the HOlUe 4
PROP. MADHU DANDAVATB (Raja-
pur) : I would lite to aUllest the folJowiDI
Items for inclusion in the next week'. busi-
nes•.
1. The Government should make a state-
ment about the reported confiscation by the
Customs authorities at Sahar airport, Bomby
on 19th March, 1985 of dollars equivalent
to Rs. 48 lakhs carried by represeDtatives of
an eminent industrialist from Ahmedabad
for depositing in Hong Kong Bank, and
their reported link. with S.L.M. Maneklal
Industries Ltd whose Director is involved in
the espionage activities by staff in the Prime
Minister's Secretariat.
2. The Government should make a state-
ment on the reported anti·Indian utterances
by the Station Manager of Lufthansa Airlines
describing Indians as 'pigs and animals' and
subsequent dismissal of the Indian employees
who protested against these utterances and
the demand made to institute an inquiry into
this episode.
MR. DEPUTY-SPEAKER: Only the
approved text will go on record.
PROF. P.J. KURIEN (ldukki): If this
is correct ...
MR. DEPUTY-SPEAKER: Only those
who have given prior notice are allowed. I
am not Permitting you. Please sit down.
SHRI ABDUL RASHID KABULI
(Srinagar) : The following item may kindly
be included in the next week's agenda.
A railway line connecting Srinagar with
the rest of the country can release the people
of the valley from an age-Old poverty and
backwardness. The railway line to Srinagar
shall boost UP Kashmir's tourist trade "hich
earns considerable foreian exchange for the
country. Besides It shall bring the prices of
the essential commodities at par with the
rest of the country. The hoarders aod black-
marketeers always thrive upon the road
blockage and closure of the Srinaaar-lammu
Nationa) Highway, taking undue advantage
out of it especially in the winter when it
comes under heavy strain due to landslides
and snowfall. A railway line to Srinagar is a
great task and challenge before the Ct'ntral
Government with vast reservoirs of resources
and technical know-how. I feel it is not
difficult to venture this scheme on priority
basis.
S (hnfral Budt.t. 1985-86- CHA}TR.A 2, 1907 (SAKA.)
O,,,elal DIIClISlioll and
THE MINISTER OF STATB IN THE
MINISTRY OF PARLIAMENTARY
AFFAIRS {SHRI GHULAM NABI
AZAD) : All the points which have been
mentioned by the hone Members have been
noted and they will receive due consideration
of the Government.
PROF. MADHU DANDAVATB : This
reply should be cyclostyled and laid on the
Table of the House.
11.09 brs.
NATIONAL SECURITY (AMENDMENT)
BILL*, 1985
[English]
THE MINISTER OF HOME AFFAIRS
(SHRI S.B. CHAYAN) : I beg to move for
leave to introduce a Bill furtber to amend
the National Security Act, 1980, in its appli.
cation to the State of Punjab and the Union
Territory or Chandigarh.
MR. DEPUTY.SPEAKER: The ques-
tion is :
"That leave be granted to intro-
duce a Bill further to amend the
National Security Act, 1980, in its appli-
cation to the State of Punjab and the
Union territorY of Chandigarh."
The motion was adopted.
SHRI S.B. CHAVAN: I introduce the
Bill.
11,10 brs.
GENERAL BUDGET, 1985·86 GENERAL
DISCUSSION AND SUPPLEMENTARY
DEMANDS FOR GRANTS (GENERAL)
1984-85-Contd.
[English]
MR. DEPUTY SPEAKER. Hon. Sbri
Manoj Pandey to continue his speech.
[Translation 1
SHRI MANOJ PANDEY (Bettiah) : Mr.
Deputy Speaker, Sir, yesterday I was trying
to evaluate from the farmers, point of vie",
the 1985-86 Budgct prescnted in this House. I
-.. -~- ..
~-----:---:-:---=-------------------
.Publiahcd in Gazette of India Extra.ordinary, Part II, Section 2, dated 23,3,1985.
Supplementary Demands 6
lor Grants (General) 1984-85
come from Champaran, a district of North
Bihar. There are nine lugar mills there, but,
unifortunateJy, two sugar mills have been Iyina
closed for the last two years and because ot
this, five thousand workers have been suffer-
ing a lot. Five to five and a half crores
of rupees are due from these mills to the
farmers as suaarcane arrears. Mr. Deputy
Speaker, Sir, through you, I request the
Hon'bJe Minister to ask the Bihar Govern-
ment to get these sick sugar mills restarted.
It possible, the Government of India should
provide money tor restarting these sugar
miJIs.
Sir, you know that about 70 to 72 lakh
tonnes of sugar is consumed in OUI country
every year and during the last few years,
there has been a record production of sugar.
In 1982.83, the production of sugar was about
84 lakh tonnes but today I am surprised to
find that our Government is going to import
sugar. In spite at a record production, our
country has to import sugar and has to spend
Rs. 300 to Rs o 400 crore worth or foreign
exchange on the import of five lakh tonnes
of sugar. Not only this, OUr Government
propose to import about five or ten lakh
tonnes of additional sugar on which huge
amount of foreign exchange will be spent.
I( the money we spend on import is used on
the revival of our sick sugar mms, I think,
tbat will be more beneficial. Then, not only
our sugar mills run smoothly but we shall
not have to import sugar also.
Sir, I would like to give one suggestion
in this regard. WhenevII aaar prices aro
fixed and some policy for sugar mills is
adopted, i.stead ot formulating a short·term
policy and fixing sugarcane price every year,
we should adopt a long· term policy rtaatd-
ing fixation of prices of sugarcane or sugar.
This will help the farmers in manaaing their
crops and in deciding how much sugarcane
and other crops they have to IfOW.
Mr. Deputy Speaker, Sir. you wiD recall
that whenever the price of sugarcane haa
increased in the country, the farmers have
vied with one another in arowin. moro
susarcanc and that is why tho paddy and
wheat crops have suffered. Tho farme~
started growing sugarcane where tbey used
to grow paddy earlier. Besides, the farmers
have to face a Jot or dirricultica in t&kina
their sugarcane to the mills. One benefit of
7 General Budget, 1985-86- MARCH 23, 1985
(JeMral DiscU8s;on and
[SAri Mano) Pandey]
tbe lool-term policy will be that sugar fac·
tories will know in advance the price of the
sugar produced by them and of the sUlarcane
as well. This policy, I think, will be bene-
ficial both to the miUs as well as to the
farmers. The molasses can be utilised for
tbe production of alcohol. In addition to
tbis, we can produce 'gasol' by mixing alcohol
with petrol and thus reduce the internal
consumption of petrol. Foreign exchange
can also be saved thereby.
I would like to say a few words about
energy also. In our villages, even today the
farmers burn wood for cooking purposes.
My submission is that in the modern context,
the importance of bio-gas has increased
substantially and it needs to be increased in
future also. It should, therefore, be heavily
subsidised for farmers so that the people
living in villages could avail of the facility
of the energy produced through bio-gas and
consequently wood could be saved.
Solar energy should also be made avail-
able to farmers at subsidised rates for
cooking purposes.
Regarding spices, I would like to say
that we should pay more attention towards
the cultivation of coriander, chillies, turmeric,
etc. Whenever we go to market, we find that
the prices of these spices have risen. It is
true of chillies also which is Produced in
abundance in our country.
As the time is short, I conclude by
supporting the Budget.
[English]
SHRI ATISH CHANDRA SINHA
(Berhampore): Mr Deputy Speaker. Sir, I
rise to participate in the Budget discussion.
I rise to welcome th is Budget which has been
presented to us on March 16. I think this
Budget is a very encouraging one and a ver,y
practical one tool.
Lot of advantages have been given so
far as income-tax rates and wealth tax rates
are concerned.
Tbere have been other measures which
have been taken also which should go a long
way in helping industrialisation of this
country.
Supplementary Demands 8
for Grants (General) 1984.85
Sir, lot of industries have been de-licen-
sed and lot of advatages have also been
given to the workers and salaried people.
The salary limit Rs. 750 has been raised
to Rs 1600 for the purpose of calculation
of bonus. This is a welcome step in the
Budget. But, Sir, I am at the same time
constrained to say that there are some very
bad points also in the Budget which come
to our notice.
The first thing that comes to our notice
is the steep increase in the price of petroleum
products. Coupled with the increase in rail.
way fares, this will go a long way in nullify.
ing the good effects of the Budget. I request
the Minister through you to see that the
steep rise in petroleum products should be
brought down considerably. During the last
2 years the prices of petroleum products
have increased tremendously. The duty on
petroleum was raised from Rs. 9.50 to Rs.
100 per tonne last year which is more than
] 0 times. This year it has been increased
from Rs. 100 per tonne to Rs.300 per tonne.
I do not know whether successive. Finance
Ministers have got any grudge against
petroleum users. This steep rise in petroleum
products, prices does not augur well for the
progress of the country. I request the Minis.
ter through you to see that the prices of
petroleum products are brought down, espe-
cially, the price of diesel which is used by
many poor farmers and a) so for tram,port
purposes and also Kerosene and LPG. These
are ordinary items used by the poor people
in the country. Kerosene is used by very
poor people. LPG gas is used by people in
lower income group houses for cooking
purposes. Even if all petroleum prices could
not be brought down, at least, on these three
items namely, Kerosene, LPG and Diesel-
the prices should be brought down drasti.
cally. This is my request, Mr. Deputy
Speaker, to the hOD. Minister through you.
I was surprised to see that in this Bud-
get some of the items whicb are consumed
and used by the very rich section of the
people have not been taxed. I would suggest
that the Finance Minister shouJd give some
relaxation in the case of petroleum prices
and impose tax on refrigerators, aircondi-
tioners, television VCRs and items like that
which are used by rich section of the popu-
lation. This would cover the lap which
would be there by giving relaxation in the
petroleum prices.
9 G.",ral Budget. 1985.. 86- CHA}TRA 2, 1907 (SAKA) Supplementary Demands It)
Ge".ral DlscflsaiD,. and
Then" cigarettes have not been touched.
Cigarettes are smoked by the richer section
of the people. But bid; has been touched.
I would request the hone Minister to impose
tax on cigarettes and leave aside bid; which
is consumed by poorer section of the people.
It seems that there is an acute resource
constraint. This is understandable and a
right decision has been taken by the Finance
Minister for not going in for new projects,
but to consolidate on the on~going projects,
which will give dividends and return as
quickly as possib1e. This is a very correct
step which has been taken.
We have invested more than Rs. 30,000
crores in public sector undertakings and the
dividend is only 0.65 per cent. If only we
could manage the public sector under-
takings in a more efficient manner, and
the dividend had been only ten per cent.
not more. we would hove got Rs. 30000
crores from the public sector, which is
equivalent to the deficit financing (hat the
Finance Minister has ta ken recourse to in
this Budget. I would request that a 11 the
public sector undertakings should be thoro-
ughly overhauled and every effort should be
made to see that the public sector under-
takings are efficiently managed and they pay
dividend to the Government. If the Railways
arc made to pay dividend to the General
Revenues to the extent of Rs. 500 crores
each' year-and I understand, for that reason
only, that is to pay dividend to the General
Revenues, railway fares had to be increased
- I do not see any reason why the public
sector undertakings should not be made to
pay dividend to the Genenal Revenues also.
Those public sector undertakings which
have been incurring losses year after year
and consuming a good deal of the taxpayers'
money shOUld be wound up.
There is a resource constraint in the
Budget. 1 do not see any reason why the
Finance Minister has not given more incen-
tive for savings. Possibly, Rs. 7000 earned
as interest from the deposJts in the bank,
is deducted from the total income for
income tax purposes. This limit should be
increased to Rs. 10000 or Rs, 12000 so that
there would be morc incentive, and naturally
the resOUrces of the Government will incre-
ase. Similarly, there is a rebate for income-
tax purposes to tbe extent of Rs. 3000
for flrats «(fklft!r.f) 1984.65
earned as dividend from the units of Unit
Trust of India, and another Rs. 2000 in
certain special bonds of the Government.
These limits can also be increased. All these
measures would give incentive to people for
more investment in Voil Trust of India,
special bond etc. and the resource constraint
of the Government would be reduced to a
great extent.
I welcome and thank the Finance Mini.
ster for the abolition of t~ Estate Duty. I
was reading a newspaper today and there is
a comment by Shri PaJkhiwala that now
people will die in a more peaceful manner. I
welcome the measures again. I \\ould also
request the Finance Minister to abolish the
capital gains tax which is another burden on
the taxpayers. 1 do not think the capital
gains tax is serving any useful purpose.
I do not know exactly how much money
this particular tax gives to the revenue. This.
I think, is a very expropriating tax on tbe
taxpayers. The very fact that the prices of
land and building have gone up over the
years should not mean that the owner of
those lands or the buildings should be pena-
lised when he sells that piece of land or
building, by paying a great part of the
money that he gets out of it, to the govern-
ment exchequer. He has to meet the expen-
SeS for his daily needs, the prices of which
also have gone up very high in the meantime.
Not only the prices of land and building of
which he happens to be the owner, but the
prices of every thing, on which he has to
spend for his living, have gone up. There is
no reason why he should pay the penalty for
this land and building price increase. I
request the Fjnance Minister to see whether
there is any efficacy in keeping .his Capital
Gains Tax in vogue.
Sir, as there is not time, I conclude by
mentioning only one more tbing and that is
agriculture. Sir, it is very heartening to note
that agriculture bas been given top priority
in the budget. It is a known fact that in
India we have about 160 million acres of
cultivable land. This cultivable area of Jand
is not increasing year after year and it is a
fixed commodity. In order to increase agri-
cultural production, we have to make most
of this Jand either by tw.) or three crops, and
for that purpose we need irrigation. I am
constrained to say that irrigation is not get-
ting the priority that it should get. There are
11 (j,nerai BUIlg,l. 1985.86- MAR.CH 23, 1995
G.nera! Discussion and
[SAri Ati3h Chandra Sinha]
many scbemes that I can quote, but rOt wan t
of time I am not quoting them. There is
one Siddheswari project about which I
mentioned when I had an opportunity to
speak on the president'9 address. There are
many such schemes which are not being
given effect to. I do not see any urgency
on the part of any Government, either West
Denaal Government or Bihar Government,
(because tbese two Governments have to
consult each other for this project) or the
Central Government to implement this
project, which would bring ten thousand
hectares of land in Birbhum district under
irrigation. Not only that, it wlll also prevent
floods in the place from where I come,
Floods are experienced every year and hund-
reds of crOtes of rupees worth of crop is
damaged more or less every year. These
irrigation projects which give not only flood
protection but also increase crop potential
should be given first priority. I do not think
this priority is being given.
I read from the Economic Survey tbat
only 2.6 million hectares of land is coming
under irrigation each year. But there is also
a clause which says that although the poten-
tial is being created, it is not being utilised.
For example, under minor irrigation
schemes, a shallow tubewell will irrigated 20
bighas of land. That is what is written in
black and white in your official papers.
But in actual practice you will find that a
shallow tubewclI is not irrigating more than
5 bighas of land. So the potential that you
are showing in your documents is not the
actual potential that is being carried out in
the field.
According to your survey, the percent-
age of land in India which is irrigated is
about 40 per cent. But in actual, you will
see that no more than 20 or 2S per cent of
land is irrigated. First priority should be
given to irrigationa} facilities so that agri-
cultural production can be increased. Sir,
with these words, I conclude.
SHRI INDRAJIT GUPTA (Basirhat) :
Mr. Deputy Speaker, Sir, over the last few
days, we have been hearing many speecbes
in this debate on the budget. And even more
than that, we have been reading the com-
ments of so many journals, economists and
others who are considered to be experts in
tbis field. Now, it is not necessary for me
SUPl'l,,."lary J),tnQnQs/.r t2
GriJ1ftl (0,,,.,,,/) 19S4-BS
to make much of an analysis of this budaet.
I congratulate the Minister for presenting
a budget which is at least transparent. There
is nothing much hidden or subtle about it.
It is enough if I mention briefly some of the
main certificates which have been given to
this budget. One certifier is the head-
quarters or tbe high Command, I should
say, of the Indian big business, that is the
Federation of the Indian Chambers of Com-
merce and Industry. Their executive com-
mittee which met the other day has called
it a bold and imaginative budget. Mr.
Palkhivala, our old friend, the apostle of
the forum of free enterprise and the cham.
pion of the economic policies which are
generally associated with the late- lamented
Swatantra Party has gone into such ecstatic
phrases in praise of this budget.
It seems that he has been practically
overwhelmed by it ; he does not know what
he should say; he has called it an epochmak-
ing budget for redesigning India; he has
said, it is the biggest economic story of
Asia in the current year; he has said, it
represents a silent revolution in economic
and budgetary thinking. Whether it will
lead to a revolution or a counter-revolution
remains to be seen. He has also recommen.
ded to the Finance Minister regarding de-
nationalisation of the 201 enterprises run by
the Central Government. I do not know
whether after a year or so, this recommenda.
tion may also be accepted perhaps in part.
Then another certificate bas been given by
the Finance Minister's precessor who has
written an article calling this "India's new
Deal". But, best of all, I came across this
morniDg the news of an editorial which has
appeared perhaps a couple of days ago in
The Wall Street Journal of New York. In
an editorial-please note the title of the
editorial-'Rajiv Reagan'. This is what the
Wall Street Journal says:
"The conservative daily said his first
Budget last week slashed taxes and cut
regulations in a way worthy of another
famous tax cutter (Mr. Ronald Reagan)
we know."
People can cut taxes at some time quite In
a good way. But we do not want to follow
tbe way of Mr. Reagan, which the Wall
Street Journal bas discerned in this budget.
It further states as follows :
13 GeMral Budcet, 1985.86- CHAITRA 2, 1907 (SAKA) Supplementary Demands 14
Gd,ral Dilcusslon and
"India indeed, is joiniua the bandwagon
of ma~J other countries that have admi-
red , and then imitated , East Asia's free-
market success."
I think by this 'East Asia, is meant great
countries like Singapore, Hong Kong and
Taiwan. Then it further says as follows :
"The budget amounts to a minor revo-
lution for a country long enamoured of
the socialist mirage."
And finally it says-I cannot quote the
whole editorial-as follows:
"Much credit belongs to Mr. Gandhi
and to the courage of the new adv isers
he has brought to pOwer."
Who are these new advisers? I do not.
know whether it is proper for me to name
some of them, though I could.
AN HON. MEMBER: Finance Minister
is one of them.
SHRI INDRAJIT GUPTA: Not Minis.
ter. There is a shadow. I do not know
what you would call it. There are shadow
Cabinet advisers. Some are advising the
Planning Commission; some are advising
the Ministry of Finance; some are advising
the Ministry of Industrial Development and
so on.
There is one thing common to most of
these advisers and that is they are a]J dis-
ciples of the doctrine of the philosophy of
the World Bank; that is known-their con-
nections with the World Bank and at least
two of them have stiJI got a lion on the
World Bank. It is better I do not name
them DOW in this discussion. I would like the
Minister, when he replies, to tell us whether
the goal to which he wants to tak e us is
the kind of economy which is being practi-
sed in Sinaapore, Taiwan or Hong Kong.
It hurts my pride to read comments like
this; and a country like India is compared
or is sougbt to be compared with these kinds
of countries. I have nothing against those
countries. If tbey choose the economies of
their own choice, they are welcome to do so.
It is their right.
Enough bas been spoken and written
about tbe intlationary potential, tbe tremen..
lor Grants (G,nera/) 1984.85
dous inlationary potential of this Budget.
There is no need to repeat all tbose things ..
I am glad to see that so many Members on
the other side of this House also who are
generally supporting the Budget cannot but
express their misgivings on tbe question of
the danger of inflation.
The estimates of the deficit for 1985.86
are not accepted as realistic by anybody.
Even the spokesmen of the Ministry who
briefed the Press after the Budget was i pre-
sented-at least according to Press reports
which have appeared-began by saying, as
tbey do every year, that inflation. will be
only marginal. It is nothing. But when they
were pressed for facts and figures, then one
of them ultimately got a bit rattled I think,
and said, "Well, if inrlation is there, we
have to learn to live with it"!
So, nobody can deny that there is in-
flation. But I am objecting to the way it is
being done. You know that the prices of
these commodities which people consume
every day are going to rise sharply. They
have already risen, due to tbe new imposts
and duties that you have imposed. But at
least ror those goods which are in the pUblic
sector, is it not the job of the Government
to fix bow much the prices will be raised?
On the petroleum products the Government
is going to get additional reVenue by these
increased duties, of six hundred crores of
rupees. And the prices which have been
raised already by the oil companies which
are all in the public sector, the prices of
petrol, the price of diesel, the price of kero.
sene, the price of cooking gas-they have all
announced the new prices-those prices will
bring to the oil companies an additional
revenue of Rs. 900 crores. So, the duty
raised is Rs. 600 crores and the oil compa-
nies cn their own sweet will fixed
up prices which will raise their addi-
tional revenue to Rs. 900 crores. What
is the morality in th is- J am not abJe to
understand. These are not private sector
producers. Private sector producers will
never ask you, how much prices should be
raised. They wiH do whatever they like. We
know it. But what about this oil sector ?
Kerosene, cooking gas, and things like that
are goins to hit every family in this country.
They are (ree to raise prices as they want.
Take anotber example. Here in para 67
of the Finance Minister's speech, ho has
15 General Budget, 1985.86- MARCH 23, 1985
General Dlscllssion and
[Slari lndrlf/il ••pt..]
said. "A lump sum of Ra. 300 crores bas
been provided in 1985·86 for payment of
additional instalments of dearness allowance,
pensionary reliefs etc., to Central Govern ..
ment employees." I would like to know
how this figure bas been asseued, because
earlfer in his speech he has admitted that in
1984.85 on this item the Government had
to spend Rs. 71 S crores, due to extra slabg
or dearness allowance which had to be given
as the cost of living went up.
Whatever the experts may talk about
the rate of inflation, strangely enough, in
this country it bears no relation whatsoever
to the consumer price index. The inflation
rate is always shown as going down while
the consumer price index is going up. So.
if in 1984-85 you had to pay seven or nine
instalments of dearness allowance, costing
Rs. 715 crores, now after this tremendous
inflationary budget which is going to increase
prices all round, you have provided Rs. 300
crores for the coming year. What is the
logic of it? You know that the figure is
absolutely bogus. It will have to be increased
considerably. But you do not want to show
the actual extent of the defici t which is
going to be there at the end of 1985-86.
This is only one item.
Then what you have increased on vege-
table on products is the price, which has
now been announced-I think they were
announced yesterday-by the Vanaspati pro-
ducers for different quantities and varieties
of Vanaspati. Are they justified 1 Did they
ask you? Did you sanction those prices 1
Vanaspati is a thing which is going to hit
every household in the country. I know the
Minister will say, It is very eaSy to pick holes
like this, but why do you not suggest Some
alternatives where could I get resources
from?
THE MINISTER FINANCE AND
COMMERCE AND SUPPLY (SHRI
VISHWANATH PRATAP SINGH): I was
looking for that.
SHRI INDRAJIT GUPTA: Do not
worry. I have not got the advantage or
asking the Deputy-Sp~aker to allow me to
speak for one hour; otherwise, I could
suggest many more things. I have get very
limited time at my disposal.
SupplelMntary Demalllh/or 16
Grants (General) 1984-85
MR.. BBPVTY-SPI!AKER : Three morc
minutes are left for you.
SHRI INDRAJIT GUPTA : I have not
completed even one-third of what I want to
say.
The whole question should be repeated
once again. Why is the tax net not expanded
to include at least more affluent sections in
the countryside? Are they for ever to be
left out when you are so hard up for resour-
ces? You can fix up some kind of a basis
or criterion of ownership. land ownership,
irrigated land and all that. So here you are
leaving out a big potential or a reservoir
from which you could collect some money
at least. The reasons are political and not
anything else ; we know that.
This year, in the year of Bhopal disaster,
there was such a good opportunity that you
could have imposed a levy, anti-pollution
levy, on all concerns in this country which
are manufacturing hazardous chemical gases
and so on. Every day we are reading reports
-not on the scale of Bhopal; thank Ood-
that some minor leakages of gas and chemi-
cals and pollution of water are taking place.
Here was a good opportunity. Everybody
would support you in the country if you
impose a levy which would be collected from
these companies making these hazardous
materials which are harmful to human be-
ings. Collect that levy and see to it that
anti-pollution measures and safety measures
are really implemented. I do not find any-
thing imaginative here at all.
Out of 101 companies which were so
long under the purview of the MRTP Act,
now 49 of them will go straight out. They
never, in their life, dreamt that the limit of
these concessions would be raised to Rs 100
crores. Many of them admitted that at the
most they were thinking that it m iaht be
raised to Rs. SO crores or something. This
Hundred crore has staggered tbem also.
This is an open invitation to these people
to go on piling up more assets and more
profits. May I humbly ask: what is going
to be the fate of Article 39 (c) of the COns-
titution-the Directive principles of State
Policy-which has said very clearly tbat tbe
State must regulate the economy in such a
way that more and more concentration of
economic power will not take place? Then
let us pass a constitutional Amendment
deleting that clause of the Directive Princi-
17 General Budget, 1985-86- CHAITRA 2, 1907 (StiKA)
General Discussion and
pies. It is much better tban to do this
hypocriticaJ thina. The entire scheme of
the Budget is meant to woo big business
and the upper middle classes, the more
affluent middle classes. 40 lakhs are taxpa.
yers, as he bas pointed out, out of 70 crores
of people. These 40 lakhs of taxpayers are
going to get some relief and benefit. No
doubt. But what about others, who have
never been able to pay taxes, never come
within the purview of taxes.and half of them
are living below the poverty line? It means
that the entire burden of the inrjirect taxes
and the inflationary prices which are going
to come will fall on the poor. It is these
poor, who have always been claimed by the
ruling party as their vole bank. The agri-
cultural labour, the landJess people, the
Harijans, the tribal people, all of them have
voted for you. Why? Because in the policy
which was followed all these years -though
it was not always very consistently imple-
mented, at least there was something there-
there was some recognition of the poor, some
recogn ilion of social justice, some recognition
that MRTP company owners could not be
treated and should not be treated in the same
way as poor people, who are below the
poverty line. Now, you are doing something
which may lead to very serious political and
social consequences. It is for you to consi-
der. There is no mention anywhere of
completing tbe unfinished land reforms. It
should be explained to us how the small
and marginal farmers are going to have
access to the promised new technology. It
means that in the countryside, in the rural
society of our country, the dh~paritic5 are
going to be aggravated and that will lead to
social tensions and more-troublc. The propo·
sed fiscal measures wiJJ lead not to more
equitable but to more inequitable distribu-
tion of wealth and income, and further
concentration of wealth wHl generate verY
unhealthy political pressures. Already you
have decided that companies can now openly
resume giving donations to political parties.
I do not know what is the legal position
but Mr. Tarkunde is reported to have raised
a very pertinent question whether the share-
hoi ders of a public limited company can be
committed by the Directors of their com ..
pany to donate monoy to a pOlitical party
whose views the sharehOlders may not sup·
port at all Unless the shareholders autho-
rise their Directors that they can pay from
the company's funds to a particular party, I
Supplementary Demands 18
for Grants (General) 1984.85
do not think the Directors have lot any
right to do this kind of things. However,
it is going to have its logical political pres.
sures. and all that ... ... (Interruptions).
MR. DEPUTY SPEAKER: Please try
to wind up now.
SHRI INDRAJIT GUPTA: I am trying
to wind up but I am the only person from
my group to speak, Sir.
MR. DEPUTY SPEAKER : Two other
persons have also given their names.
SHRI INDRAJIT GUPTA: Nobody
else can give his name. Let me clear the
confusion that J am the only Person from
my group.
Tht! Minister may challenge what I am
saying about the cut in outlay for all basic
development purposes. This is the most
disqUieting thing in the whole Budget. Very
rapidly J, will just read out the outlay figures
for 1984-85 compared with 1985-86. These
figures are all in crores. The outlay for
petroleum was 3,127 in 1984-85 which has
now been reduced to 3,08.5. Fertilizers was
573, now reduced to 544 ; coal and lignite
has been reduced from 1117 to 997 ; drugs
and pharmaceuticals was 66 which is DOW
going to be reduced to 51 ; for railways it
is more or less stagnant at 1650; iron and
steel was 1,340, now it is reduced to 925 ;
non-ferrous metals have been reduced from
777 to 566; for. Vizag steel plant, as you
know, it has been reduced from 650 to 215.
On the othcr side, welfare of Scheduled Cas-
tes and Tr ibcs bas been reduced from 71 to
42 ; housing reduced from 84 to 30 ; NREP
slightly reduced from 236 to 230~but not
incrcac;cd in any way; Khadi and VilJage
Industries reduced from 134 to liS ; Self.
employment Scheme for Educated Youth
red uccd from 149 to 65 ; desert development
reduced from 10 to 8 ; agricultural financial
institutions reduced from 297 to 155. There
are only two items on which you can see
there is some welcome increase. One or them
is the Central Power Scheme. That is a very
important infrastructure which is primarily
with the private sector. The outlay for Cent-
ral Power Scheme has been increased from
1431 to 2090 ; rural water supply has gone
up by seven crores from 293 to 300 ; IRDP
gone up by one crore from 214 to 21S. I am
chargin& tbis Government with makin. a
cl ean break. It is true, they also claim it
a clean break from the Budgets of the past
19 General Budget, 1985-86- MARCH 23, 1985
(haral DisCllnioll aM
[SlIrl IndraJit Gllpta]
But tile point is in what direction is the
break. So, I will say that in the past YoU
have fousht elections, recently also you have
'ought and won them on the assurance to
the people that the legacy that we bave
inherited from Nehru and Indira Gandhi ..... .
(Iifte"uptio1l).
SHRI VISHWANATH PRATAP
SINGH: Shri Indrajit Gupta has forgotten
to mention the hike in State Governments'
share which also includes all these priority
programmes.
SHRI INDRAJIT GUPTA: Yes, you
arc givinl sometbing more to tbe State
Governments. That Is good. I welcome that.
My point is that you told the people very
clearly during the elections that the path, the
road, the policies, on whicb the country has
been advancing all these years, the Indiraji
and Nehruji line, we are going to follow.
It is my complaint that you are hood-
winking the people because, after having
lot tbe majority and formed the Government,
you are making a clean departure from the
past, for this is Dot what Pandit Nehru and
Sbrlmati Indira Gandhi stood for. They
might not have been able to implement these
thinss in a very decisive way-lot of compro-
mises, vacillation, sometimes retreat and all
that-but the whole thing was geared to
a certain broad aim and now, I say, this is
tbe beginning of bidding good.bye to all of
them.
We bad a phrase which said that the
public sector should be taken to command-
ing tbe decisive heights of the economy. It
is Sood.bye now to that, Please read the
budlet proposals. Some kind of discipline
is imposed, however loosely, by planning.
Planning also lives social priority; we arc
now saini to bid good .. bye to that and
good ..bye to the Directive Principles of State
Polley. We are bidding good.. bye to all our
loa11.
Sarlier, at least we used to speak of the
sociaURic pattern of society. Why don't you
say clearly 'cwe 1m' going to give up all
tbeae tbiDgs"? I would not mind it, but say
,~ do not believe in these things ; we arc
lOiDa to live them up ; everything that the
CODIfCII PartY and tbe national movement
baa laid before that, wo arc aoiDi to live
Supplem6nlary Demands for 20
Grall" (Gderai) 191U...s,
up ; we are solng to follow the path of
Singapore and Taiwan". We do not mind
that.
{Translation]
SHRI BABULAL MALVIY A (Shajapur):
On a point of orders, Sir.
{English]
MR. DEPUTY SPEAKER: What is
your point of order?
(Translation]
SHRI BABULAL MALVIYA: My
point of order is whether discussion is taking
place on the Budget or on the Congress
Party. How is the Budget connected with
what the Congress Party is doing ?
[English]
MR. DEPUTY SPEAKER: No, it is not
a point of order. I would request Shri Gupta
to conclude soon.
[Translation)
SHRI INDRAJIT GUPTA: Don't be
agitated. Leftist parties are criticised daily
on the floor of the House.
[English]
PROF. MADHU DANDAVATE (Raja.
pur): I am prepared to offer the Janata Party
for attack.
SHRI INDRAJIT GUPTA : Therefore,
I may say in conclusion that this budget,
in its entirety, can only be opposed; it
cannot be supported. There is some sprink.
ling of pepper and salt, I know. You have
given some relief to the salaried classes. I
must mention one thing in all fairness. He
held a round of consultations with the diffe-
rent groups and interests before the budget,
which is done everY year. In the meeting
he had with tbe trade unio1'1ists. I happened
to be present, and I mUlt admit that he had
accepted the three proposals which I had
made-I bad checked up my notes alain. You
are goinl to say that, I know. ODe sU8'CS·
tion was that the Compulsory Deposit Scheme
should be ab0lished. He has done it ; very
good The second was tbat the exemption
Umit for income-tax sbould be raised; he
bas done it. tboulb some people are Dot
 21 O• .,.al Budg~tf 1985-86- CHAITRA 2, 1907 (SAKA) Supplem~"tQry Demands 22
a..NII Dl6cusIIOll ad lor Grants (G_".'1I1) 1984-85
satisfied with the limit ; they feel it should ~urage in breaking tbe sbackles of tradi.
be raised to Rs. 25,000. The third was that tlonal thought and making radical proposals
the ceiling on bonus of Rs. 1,6S0 should be for simplification and rationalisation in the
made operative. In fact, he has done all tax: structure. In view of the severe resource
these thinas. But when we made these sug- constraints-and the resource constraint is a
gestions, we never said that they should be grim reality-we cannot deny that he had a
at the cost of the entire economic goals and difficult task to face and his options were
development of tbe country. These are sops few. In my view he had no options. He had
given to somo sections only of the employees to leave uncovered a large deficit of Rs
and the middle class. That is why I say that 3,349 crores in the Budget for 1985-86. Thi~
I cannot support the budget in its entirety. had to be done to maintaill the Centre's
development expenditure at a 51 ightly higher
SHRI VISWANATH PRATAP SINGH:
level next year what it has been during the
Workers wages have been brought pari passu
current year. Even then our Budgetary
with secured debts. resources would fall short of our require-
ments.
SHRI INDRAJIT GUPTA: But that
is only when the company closes down and
. T~e large deficit has caused apprehen.
they are thrown out on the streets ; then slons lD some quarters that it would accele-
you will give them something mure; it is rate inflation which is already there. The
good. deficit is likely to increase further as did the
He has stated that the bad management, deficit of last year. In fact, tbis has been tbe
who declare these industries sick and close case over the years, but this is a risk which
them, should be punished or something the Finance Minjster had to take in a
should be done to them. What is done to calculated manner. There was no other go
them? In future, they will not be permitted for him. The options were almost nil. If he
to take any loans from the financial institu- wanted to avoid the defiCit, then he would
tions. What a great punishment ! There are have had to take one of the t brec courses
companies which are running, which are not The first course be had was to prune dow~
closed down where, according to Govern- the Plan outlay. This would have meant a
menl's own figures, they have misappropria- regression or fall in the growth rate achieved
ted crores of rupees of the workers' provident after herculean effort, a prospect which the
fund and Employees' State Insurance Fund, people would not have tolerated. The second
they have not deposited the money with the option was to go in for still larger borro-
Government. What is done to them? Nothing wings. He has proposed to borrow Rs.
1.000/-crores more for the next year tban tbe
is done to them.
borrowings made during the current year.
Anyway, finally, I Just want to say, my Moreover, the prospect for borrowing from
last sentence, the Prime Minister thought fit abroad is bleak. The sources of concessionaI
to describe the city from which I come, finance are drying up and the rates of
Calcutta, as a dying city. I protest strong1y interest in the commercial fieJd are high . To
against this kind of remark which I do not raise more capital in the home market would
think his mother wou\d have used. He is be possible if tbe rate of savings went uP.
the Prime Minister of the whole country After two or three years the country wiD
and not only of the places outside Calcutta. have to start paying back instalments and
But I say the Budget has already proclaimed interest OD the capital borrowed from the
the death of aU the basic oconomic policies IMF. To avoid getting into debt that he has
that we believe in, of selfreliance, of public decided not to borrow more than Ra.
sector and of social justice. This is the most 5,000 crores next year, which is Rs. 1,000
alarmins tbing in this whole Budget. There- crores more than durina this year.
fore, as far as we are concerned, we have
no option but to oppose it tooth and nall. The third alternative open to him was
to raise taxes sucb as those on income and
SHRI Y.S. MAHAJAN (Jalgaoo) : corporate profits. The high rates of taxes
The Budget presented by tbe bon. prevailing at present have already Ii ven riso
Miniater for Finance is bold, imaainative to the problem of tax evasion and black
aad rull of innovations. It shows his money. Black-mone)' has bocome a caDCOt
23 (Jeneral Budget. 1985-86 -MAlteH
General Discussion and
[Shrl Y. S. Mahajall]
in the economic life of our country. So,
these are the serious problems resulting in
the parallel economy, which according to
some estimates accounts for nearly forty per
cent of the value of economic transactions.
Various estimates have been made by experts,
but the estimates necessarily pertake of
guess estimates since reliable data are not
available. But such a course would not have
helped him. The total yield of direct taxes is
Rs. 4,000 Clores. Out of this Corporation
taxation yields about 2,000 crores. Even an
increase of 10.15% would have yielded ouly
Rs. 200 crores to Rs. 300 crores.
12.00 hrs.
It is clear that such a course would have
been counter·productive, would have given
rise to greater evasion and black money and
therefore, the Finance Minister had no option
but to leave a large deficit uncovered for the
next year 1985.86. Now, the question which
I have posed in the beginning is: Will this
cause inflationary rise of prices ? My answer
is, 'Not necessarily'.
If the weather gods do not frown and
industrial production increases as a response
to the powerful incentives provided by the
budget, then it should not be difficult tl)
contain inflatioll and prevent its accelera-
tion. The expanding economy should be able
to absorb the deficit even if it increases as
it did last year. In 1980 inflation waS raging
at the rate of 21 per cent per annum. In the
last five years the national income increased
by S per cent per annum and so we could
bring down the rate of inflation to 6 per
cent in the current year.
There is another factor which will help
him considerablY and that is the n:duction
in the amount of black money due to tbe
strict measures contemplated by the budget.
The Finance Minister has already said that
the Government is determined to pursue its
socio-economic aoals without fear or favour
and those who continue to indulge in tax
evasion or other economic offences will do
so at their peril. Even a 10 per cent reduc-
\.ion in the amount of bJack money would
have a areal moderatina effect on increasioa
prices.
Finally, the Finance Minister bas at his
disposal the powerful weapon of monetary
policy, which he caD wield, lif necessary. If
2~, 1985 Supplementary Demands for 24
Grants (Genettd) 1984·85
he can control the amount of money genera-
ted every year, he will be able to regulate
the prices.
The second aspect of the budget which
has escaped the notice or many people and
to which I want to draw the attention of
the House is that the budget enlarges the
scope of our poverty-alleviating programmes.
It broadens an strengthens the base of our
efforts in this direction. This characteristic
of tbe budget has not received the attt:ntioll
it deserves. It is in conformity with our
basic economic policy of garib; hatao.
First of all, all the well-tried schemes
such as the Integrated Rural Development
Programme, the National Rural Employment
Programme and the Rural landless Employ-
ment Guarantee Programme have been given
an allocation of Rs. 865 crores with a pro-
mise to give morc, if necessary. These
schemes shall not find themselves short of
funds, as stated by the Finance Minister
yesterday during the COurse of the debate.
Under the first programme, viz, the
IRDP, three million families would be assis- 1
ted to rise above the poverty line and
further, some of the beneficiaries who have
already been assisted in the Sixth Plan
period, but could not come above the
poverty line would be provided further
aS5istance in the Seventh Plan.
The other two schemes, namely, the
NREP and the RLEGP are meant to pr0 4
vide employment and at the same time create
productive assets for tbe community. These
schemes have been supplemented by social
security scheme and the crop insurance
scheme. The social security scheme promises
that Rs. 3,000 will be provided to the
dependent of the person who dies in the
accident.
Another innovative scheme relates to
industrial workers. Industrial sickness Is a
serious malaise of our economY. As a result,
it is the workers who surfer most due to
closure of industrial units. Their dues have
a low priority so far. As a result of this
budget, their dues will:rank above the dues
of the Government.
Sir, the crop insurance scheme and the
accident insurance scheme wHl remove tbe
sense of insecurity in the lives of millions or
people. Removing insecurity in future is as
 2S General Budget, 1985-86- CHAITRA 2, t907 (SAKA) Supplementary Demands
General DIICU$8101t a"d
important as the monetary benefits given
DOW. Both the schemes will certainly take
us further towards the goal of an egalitarian
and socialistic economy.
Sir , there is another point which I would
like to briDi to the notice of the House.
The public sector is losing money every
year. It is therefore necessary to improve
the management of these units so that they
utilise their capacity fully and their empJoy~
ment policies are on sound lines. It is repor-
ted that in many units, the marginal produc-
tivity of labour is minus. If commercial
principles are followed, I am sure these units
would be able to add something for resour-
ces for Plan requirements.
I would like to bring to the notice of
the House the serious position in the textile
industry. Government is aware of it and it
has appointed a number of committees to
look into the problems of this industry. It is
the first industry to be organised in the
country after the British came here. I t is the
largest industry from the point of view or
employment. In my district, there is an old
textile mill which has been closed for the
Jast six months. 3,000 workers have been
thrown out of employment. The directors
mismanaged the affairs of the company.
When it was running well Six years ago
this min had a debt of Rs. 80 lakhs but
when it became sick, its debt had gone up
to Rs. 12 crores. It was the nationalised
banks which had given loans to this mill
without considering properly whether the
management was sound or not. I would
request the hon. Minister to take steps to this Government on its bold steps to boost
taking oVer of the mill Or put it on sound the growth of Indian industries and to give
basis so that the 3.000 workers who are relief to the poor, low-paid and the farmers.
thrown out of employment could be taken Crop insurance is a long-standing demand
back in 'the mill.
With these remarks, I support tbe tation, the Government have boldJy decided
Budget.
11.06 hrs.
SHRI VAKKOM PURUSHOTHAMAN
(AJJeppey) : Mr. Deputy.. Speaker, it is with
great pleasure and pride that I SUPpOlt
this Budget. First of all, I would like to
conaratulate our Finance MiDister. Under
the dyaamic leadership of our Prime
Minister. Rajivji, he has presented a marve ..
Uous budget which has got very many new
~6
lar f!lrtllUs (GeMr./) 1984·85
dimensions. He has studied the basic pro-
blems of this big country and has made an
earnest attempt to give a good start to solve
them.
In the past, after independence, we have
achieved tremendous progress in this Coun-
try, In the agricultural sector, I don't think
any country bas made this much progress
during such a short period as we have. In
the industria) sector also, a country which
was not producing anything at tbe time of
jndependence is now producing almost
everything that is comparable to that of a
developed country.
Sir, due to shortage of time, I don't
want go into the details of our achievements.
Still, the burning problem in the country is
unemployment and under~employment,
especially unemployment of the youth. In
many countries \\ohich claim that there is no
unemployment, either they have only a thin
population or they are sending the new
generation to the agr ;cultural field because
they have got even now virgin lands for
cultivation. But in India, especially in a
State like Kerala, due to over-population
and scarcity of land it is not possible. So,
tbe only way to solve that burning problem
of unempJoyment in this country is to give
a big boost to the development of industries.
That not only generates employment but
produces wealth also. So. the present
approach of Our Budget will help a lot to
solve the unemployment problem in Our
country.
Whatever be the cr iticism, I congratulate
of our farmers. Even though there 8re so
many practical difficulties for its implemen-
to prepare a scheme for the same.
The leaders of the opPosition were also
forced to concede certain very good propo-
sals of the Budget. For example, my bon.
friend, Mr. K,P. Unnikrhhnan has said, "I
welcome the crop insurance tor farmers and
assistance to craftsmen." He has also said
that it is a sugar-coated pill. I agree with
Mr. Unnikrishnan that this Budget is sweet
and it will cure many or the diseases now
in existence in the society,
27 General Budget, 1985.86- MARCH 23, 1985
G~Mral Dl8culllo" tmtl
[Shri ¥okkom Pllrmothaman]
The former Finance Minister of the
Janata Government, Mr. H.M. Patel, bas
also called it "intrinsically good Budget".
Even Dr. Datta Samant has welcomed the
increase in the level of bonus for workers
from Rs ,SO to Rs 1600. But I am extre-
mely sorry to note the reaction of our West
Bengal Chief Minister, Mr. Jyoti Basu.
Referring to the raising of income-tax exemp-
tion limit, Mr. Basu said that the States
used to get a share of the tax realisation,
but now they would be deprived of whatever
they had been getting. What does it mean?
It means that the West Bengal ChLf Minis-
ter is against the raising of the income-tax
exemption limit.
Since atl the different aspects of the
Budget have been discussed in detail, I do
not want to repeat all those things again.
As Mr. H. M. Patel has put it, it is an
intrinsically good Budget ; it is a progressive
Budget ; it is a pro-labour Budget and it is
a pro.. farmer Budget. Above all, it indirectly
generates employment.
In spite of all these th ings and in spite
of all this progress and developments we
have achieved in the past, I would say that
we must prepare concrete proposals and
schemes to find employment for all and
provide homes ror all tbe homeless. If these
two major problems can be solved as a
time.. bound programme, we will be far ahead
of many of the developed countries.
Coming to my State of Kerala, I request
our beloved Prime Minister, the Finance
Minister and other Ministers to have a
special conside!'ation towards Kerala, taking
into account the present political situation
in south India. Although tbe opposition
parties were always criticiSing the Centre by
saying that it is having a step-motherly
attitude towards Kerala, our people have
also stood with our beloved Prime Minister
in giving him a massive mandate.
PROF. MADHU DANDAVATE: Now,
it is a step-fatherly attitude!
SHRI V AKKOM PURUSHOTHAMAN:
I am prouod to say that aU the congress
candidates in my State have been elected
by the people. Tbey were having large
ex,ectations that this Go vernment will do
somethinl for the lood of Kerala State.
Supplt!",.ntary Demands lor 28
Grants (General) 1984.85
Now, when the Railway Budlet came
I)ut, we were all very desperate. But, at the
same time, we have given our representation
to the Prime Minister and the Railway
Minister and, I hope, tbat something will
be done to find more funds for on-gains
schemes, like. Ernakulam-Alleppey-Kayam-
kulam Railway and the schemes pending
with the Government of India.
I am happy to note that more funds
have been allotted for the development of
tourIsm in the country. Kcra)a, as you know,
is a beautiful State where there is much
scope for the development of tourism. After
landing in the airport at Trivandrum, you
can reach the internationally famous beach
resort, Kovalam, within 20 minutes and
after having a sea bath or sun-bath, what-
ever you )ike, you can reach a hill station
Ponmudi within another 1- 1/2 hours.
My constituency Alleppey is known as
the Venice of the East, 5uch a beautiful
area where you can See the sea, the back
waters, the famous Vembanattu Kayal, etc.
If developed, it will b~ a tourist paradise.
I would also like to request the Govern-
ment that the port of Alleppey should be
developed as a satellite port of Cochin.
.Besides relieving congestion at Cochin port,
this will provide employment to Alleppey
labour and would open up fUrther possibi-
lities of quicker export of coir, commodities
and spices from the hinterland region.
OUf traditional industries in the State
of Kerala are facing a crisis and if sufficient
oxygen in the form of assistance is not
aiven by the Centre, I fear it will very
badly affect the livelihood of lakhs of people.
For example, there is lot of unemployment
in the coir industry. These traditional wor-
kers who know no other kind of work will
be put to starvation if they do Dot get a
minimum number of days' work. There are
many other probJems in the coir industry
which earns Jot of foreign exchan&e to our
country, I request the Government to take
immediate steps to save tbis industry from
liquidation and lakhs of people from star-
vation.
You know that lakhs of people trom
my State are working in different countries,
especially in Gulf countries. They have a
standing complaint tbat thf air fare they
29 GelltrQ/ Buiget, 1985-86- CHAITRA 2, 1907 (SAKA) Supplementary Demands 30
GtlUlrtU DisCIUsion and
pay ror Air India to come to Trivandrum is
much bigher tban the fare to any other part
of India. I request the Government to
rectify this injust ice done to our people.
J also request that Trivandrum air port
should be declared an international airport.
The bon. Minister for Civil Aviation
bas said that there are certain proposals to
find a new location for the development of
Cochin airport. Shcrthalai is the most sui-
table place for thi!il airport and I request
the Government to take necessary steps to
expedite the land acquisition on and other
connected works.
You know Kerala is a deficit State as
far as food production is concerned. We are
not even producing half of our total requ ire·
ment. But we have got Kuttanad which is
our granary consisting of about 1 1/2 lakh
acres. The entire area is below sea level
and so the cost of cultivation in this area
is very much on the high side. It is to be
protected from floods with strong bunds,
The Kerala Government have prepared some
schemes to construct permanent bunds so
that two crops can be cultivated in that area.
But now, due to the high cost of produc-
tion of paddy, the poor farmers are not in a
position to repay the cost of construction of
the permanent bunds and recovery proceed-
ings have been started against them. Taking
into account the peculiar conditions of that
area, Kuttanad, I request the Government
to make a study of Kuttanad cultivation
and take necessary steps to help these poor
farmers from their debts by meeting the
entire cost of the permanent bunds by the
Central Government.
I once again support this Budget.
[Trans/ation]
.SHRI R. ANNA NAMBI (Pollachi):
Mr. Deputy Speaker, Sir, I thank you very
much for giving me this opportunity to say
a few words on the Budget for 1985-86 on
behalf oC my party, tbe All India Anna
Dravida Munnetta Kazhagam.
This Budget is blazing a new trail with
many innovations. This has created an aura
of modernity in economic thinking. Many
*Tbe speech was ori.inally delivered in Tamil.
lor Graftts (GIIMral)1984..85
bon. Members who preceded me pointed
out that tho prices of essential commodities
will be going UP. I am unfortunately not
in a position to controvert that, because the
price-hike in petrol will definitely lead to
price escalation. When the transport costs
go uP, the inevitable consequence is increase
in prices. The hon. Railway Minieter had
some premotion about this and he ensured
that the price rise in petrol is reflected in
his freight rate. In his Budget he bas cleverly
fe-classified the essential commodities like
wheat, pulses, salt, rice etc. enjoying conces-
sional freight rales ; this has led to increase
in freight rate for these commodities. As
I said, the price rise is inevitable in this
environment of hike in freight rate and hike
in petro) price. I want that the hon. Fin-
ance Minister should apprise the House of
the concrete steps he proposes to take for
containing the price rise.
I would stress the need for containing
the public expenditure. The non-plan expen-
diture must be contained. Unless the non-
plan expenditure is contained, there is no
escape from spiralhng inflation; without
curbing inflation, price rise cannot be can ..
trolled. I wish that the hon. Finance
Minister bas introduced the ExpendiLure
Tax for this purpose. In the place of Estate
duty which has been repealed by him, he
should have brought the legislation for
containing non-plan expenditure. 1 hope
that he will ponder OVer this and act
suitably.
The industrial expansion is retarded be-
cause of paucity of funds, Jf there is no
inordinate delay in tax collection, there wiIJ
be funds. Similarly, jf the Government
taxes steps for rooting out tax evasion,
smuggling, hoarding etc" through stringent
legislation and rigid implementation of such
laws, then tbe Government will have funds
in plenty. Tax arrears are presently more
than Rs. 1200 croces. Effective steps should
be taken to collect taxes on a tight schedule.
The Government should impose a ban on
takins recourse the tax cases to t he courts
of law. Along with these steps and tbo
Expenditure tax, the hon. Minister of Fin-
ance will have opportunity to present a
surplus budget before this House.
I welcome the Crop Insurance Scheme
proposed to be introduced. I am happy that
 31 Genital Budget, 1985.86- MARCH 23 t 1985
G~".rQl Di$cussion .and
(Shrl R. A.nna Nambi]
the Finance Minister bas taken care of the
interests of farmers of our country. Our
Chief Minister, Dr. Puratichi Thalaivar.
Thiru M,O R. has been repeatedly stressing
since 1972 that such an insurance scbeD.1e
for the welfare of farmers should be intro-
duced. Our hon. Prime Minister, Shrl Rajiv
Gandhi has heeded to this request and bas
ensured the introduction of Crop Insurance
Scheme. Presently, wheat, paddy and oil-
seed. are being covered under this scheme.
I want that sugarcane, coconut, turmeric
and such other agricultural crops also
should be covered under this scheme.
In Tamil Nadu there is acute paucity of
electric power. This bas adversely affected
the industrialisation of the State. The
Government of Tamil Nadu have recommen-
ded to the Central Government a few
Atomic Power Project. Thermal Project and
Hydel Projects. For instance, the Upper
Amaravathi project in Udumalapettai in my
Pollachi Constituency is awaiting the appro-
val of the Central Government. I want that
the Central Government should not only
approve this project imm~diateIy but also
approve all other power projects that have
been recommended by the State Government.
If they are implemented expeditiously, Tamil
Nadu will not only become a surplus State
in power but also supply power to neigh-
bouring States. I want that thc power
generated in Atomic Power Plant in Kalpa-
kkam be exclu~ively supplied to Tamil Nadu.
I take this opportunity to say that the
nutritious meals scheme which has been
introduced by our hon. Chief Minister
should be treated as a plan scheme, as has
been done in other States.
For the past ten years, no allocation has
been made by the Centre for national high-
ways in Tamil Nadu. In tbe absence of
adequate railway lines, the national high-
ways are the arteries of industrial develop.
mente I want that the Finance Minister
should ex;ert his good offices for getting
allocation for national highways in Tamil
Nadu.
The Central Government had constitu-
ted two Technical Committees -one by the
Planning Commission and the other by the
Ministry of Energy - for studying the ques-
tion of utilising the waters of west-flowing
rivers by diverting them towards east. Such
Suppl,mentary Demands for 32
Grants (General) 1984-8S
waters can be stored in irrigation dams. I
want that theso reports should be placed
before the House. The Finance Minister
must ensure their implementation also by
allocating runds.
Before I conclude, I would again request
the Finance Minister and his colleagues that
tbe power projects sent by Tamil Nadu
Government are approved by the concerned
Ministries.
With these words I resume my seat.
SHRI K.J. ABBASI (Domariaganj) : Sir,
I am thankrul to you for giving me an
opportunity to speak on the Budget. I
support the 1985-86 Budget, Through you,
I congratulate the hon. Finance Minister on
his presenting a Budget which is being appre-
ciated by every section of the society.
Apparently, there cannot be a budget which
will please all sections of the society but
this is a Budget which has been appreciated
by everyone.
I was listening attentively to the speech
of my able friend Sbri Indrajit Gupta. He
said that we were deviating from the pOlicies
adopted by our leader~ like Pt. Jawahar La1
Nehru and Smt. Indira Gandhi. I want to
assure him, through you, that the Congress
Party is committed to those principles and
no one can deviate from them. Therefore,
whosover becomes the Prime Minister, our
principles will remain the Rame as before.
They cannot be changed. Mahatmaji had
said that before starting any work, we
should think of the poorest of the poor and
see whether they were benefited by that work
or not. If they are not benefited, then that
work is not proper. Our Finance Minister
has for. the first time thought of those things
which had never been thought of earlier.
Our socialist Government has considered
that the crops of the poor rarmers get ruined
by natural calamities and, therefore, crop
insurance should be provided for.
One thing I want to say particularly to
the bon. Minister is about the eastern dis-
tricts of U.P. Every year our district is
afrected by drought and floods. The crops
get damaged, lor which, what to speak of
giving compensation, even the land revenue
is not remitted. Tberefore, socialistic step
you have taken this time in this regard
deserves maximum appreciation. Then, I
. ":lY'!'_~ ~ ~.~ (,S.4x.4). ...~.~~
',,' "'i~"~;" . ".'i '. I' ': !:~ . ·for QrafJrl (q"",a1l 19U85
".

'.
, ,,' I '

r,Q,".,·~.~, :~p:~, .~;rQyt&i"Q,P" Qt

",i '. request that·.~ra_eQlCll~ b4 ma401Q to ~OIP.
.j ~', ., "'. ,,~ '.. ~,Cl",.~ ~l . .1~,vltur'l
the,

tho centres open tUl tbe time tbo farmerS

1~"", _,' 0,,","'". '.,' ,'-=,O~,.. V~~.J,l\. Qf waat to ~1I thoir foodarlins. The eppr.o.
~., ~OQ .......ta~_ a step to cb..
~' ~..~. ·pQUc;y.· ,a,,~. _. Unitt'
~~. FI,. .Will,~ imp$tted ~r~ _«QCltion
new .t. ,priate'eourse "ould be to make atraagemeatl
to Uft toodgraiQS rtom the barns tbemselv...

up ~,~"~:,~I09D4at1..I''(o1. 'Pf' th~' .150. . I would aJ$O like to 'Qhmit t~ ' .

~ ~,,~~at~ )'~ YoU. bave pJ;ovide4 many
f~tJide• •p tlK\ ~th fqr tbelt proc res$ soon
~~ .I~ you d_rve' cPd&t'~ltulations. 10
~ ot cl~\Uf:I,
Qt, mills and
~k:~f'
!.~r pt()vi~iq
,.nro. rolief
YQu bavc.,prepafc;d ,tc;b,emes
to them, whictl
C<?~IX\eqd.ble st~p. Some tax reliOf. hal ,*n
p,fQvl<ic;d to ch.ec1s. tQ evasion in the coun·
trx, ~fdoa allQUsl:liol Estate Duty, you
h.~ _~tea1l'llitled tbe procedures io- such a
\\;~y tb.t t.x evaders would not be able to
h~" urt4~ b~neftts. In spite of all this, if
'9~o ~SO.JlS still indulge in tax-evasion,
. special courts have been provided for them.
The funds being provided under schemes
liQ NR2P are, to my mind, in!iuftlcient~
1'l\e, akouJd be increased. These schemes
MVO prpvec! to be beneficial in' our
I ar~ ~herefore. tbe more the money pro-
vi.s,d for them, tbo botter it would be.
I would like to make a
'~~lf of the farmers. They are not ,etting
L1{~ for 'tbeir produce. in accordance with
t\l~i, c.Qst ot prOduction. This Parliament
~~~ft'"Q's 'armets wllo cQnstit'* 80. per cent
tlf ®r I?opulati~. and
r'Dla~~ ~eprive4 0"
aU .lbe con;essioll. You
~aycr. lb" time rais~ t~e pfoc"uement price
"r ",\l~(. from~. 152. to Rs. 157 which. I
tbink. is still on tbo lower side. My request
i8 that they should be paid keeping in view
~ncrease eff~ed ,iD the subsidy aD rertiHse",
IS not sufficient. It should be jDCl'~
furtber. '.,
the lo.ck~outs,
a is
You have displeased the bouse wives to
some extent. Tbey are crit icising you for
iDcreasing rbe price of cookiDg gas by silt
rupees. Tbe prices of vegetable oil aDd
other oils have increased. The prices of
toilet soaps and detergents have also re-
gistered an increase. Due to increase in the
prices or
petroleum produpts, diesel aDd
petrol have also 'been ar~ected ; kerosene oil
price has also increased. With these
incr,ases, housewives are in difficulty. There
is need to give them some relief.
•
On 16th March the Budaet was presented
"'.y but 00 17th March -when I went to get my
vehicle filled with petrol, the price of petrol
bad already. increased. Regarding other
articles, we come to know in advance, as to
submission on rrom which date their priCes wiJI be i~roa­
sed, but in the case of petrol, tbe prices w~
increased fortbwith. This aspect sbould alaQ .
be looked into.
yet t~se very farmers I tbank you fot increasing the amount
of pension, but, at tho same time, I would
request tbat freedom Gabters' pension should
also be increased as t bey are a,ed P~IOns
and tbey may not live lona. We should.
therofofC', pay attention towards them.

i,.
~'!,Wtco.t 0( production. The support price
~ bl you' wben tbe produce has already
&:MC~e4 ttl, mar·kot. Tilt proper course
With these words, I support the Btidpt
wboJe-beartedly.
9~. 'be ~q, ~" the IltJoo before its arrival PROP. NIRMALA KUMARI SHAK-
4l. ~~ ~et 10 that the farmers may know TAWAT" (Cbfttorgarh):. Mr ....· Deput"
~. ~y~," tb. price they were tolD a Ito let.
,,~ ""41
_ , \0;1.11, •• the
J)d~
Speaker, Sir, tbe Budget presetJted by tbe,.
mo.-Itt _
rat1Den~
&,,;04 before Pinance MiQister for the year 1985-86 bas
been prepared in a very balanced .rapDel'
. ~~ '~o~ req,., '. wo~ld Uko Jo m,,,e and. relief ha. been provided fn it for' the
_ bebalt .()(. rhe ~artDeri. Whatever CeQtfOl common man. Such a bold Bud_. in wlUcIa
,ou 'prOpOiO to ~poa . for tbe purchaSo or vit,l chan.e, have been Introduced, bad not' '.
,*0 presented duriol tbe' last 37 years.
t·"
'~," .f"~,."
01.· "" .
.,' '. "~ :&n;""'_ create... dirficulties ,tor 'ac"
... •.•.
Pri';' it appel.rS that it '.bas beta , ...

....
t~. .~1l1' .. centres are J2,0t, pared by'" 8a a~l. economist 'fiery' ~
;''','~ eJ ..ct..lIM,.are CIOied t~
'··.·1£ .
' -1¥t:.,
~". tt, tbe ocm... ·:.e
~-.....-.,
"·tiIne bOcaUIO it provides rdicf to an teCtioDJ" '::ot',: '.
thO society. The pOorer aectiOIlIlike ~.
,.~~.,,,,,':\t( ,~~-, :J. 'tM'''''' ,.....·aM· __..·QO·~·· . ". . . . . .
35 O.,.,.al Budg". 1985-86- ; MARCH 13, 1985 8upplem,nIQry D4mtl11d11fJr 3~
General DJ#U.fsloli and Granti (a,Mt'a/) 1984-85

[Prol Nirmala KlImari Shaktawat] like to make some criticaf commeOts al80.
ted to a lesser e"tent b) it, but the middle
You have shown an uncovered deficit or Its.
3,349.cr ores in this Budget. Prom where
income Iroup fam ilies and new Industrialists
will this deficit be covered? It will defini-
have benetlted considerably. Tbe common
tely fan infiation, and the levy of new taxCl
mao has, therefore, appreciated the Budget. to the tune of Rs. 431 crores will indirectly
Most of the -peol)le in the country have have an adverse effect on the cqmmon maD,
welcomed it. I, therefore, welcome this
I would like to .say this particularly in
Budaet whole-beartedly. respect of housewives that due. to this
It was being conjectured till tbe Budget- Budget. an increase of 15 to 20 ptrcent bas
eve that taxes would be levied under it in been effected in their budgets, because gas
the same manner in which railway fares and has become costlier due to increase i" the
freiabtl bad been raised in the Railway prices of petrolfum products; even kerosene
Budlet and tbat the people already suffering and other commodities, such as cold drinks,
due to inflation would be hit hard, but when vanaspati ghee, etc. have also become cost-
this revolutionary Budget was presented. it lier. Hence, I strongly urge upon the Finance
disarmed tbe critics. If t,he Members from Minister to withdraw the inere,ase proposed
the Opposition still indulge in criticism, r on kero~ene oil because the poor and the
will say that they are criticising for the sake jhonpri.dwellers use it for lighting lamps.
of critiCism. The reHef given to middle I request you to please withraw tbis
income group families, reeling under the increase.
impact or price.. rise, cannot be ignored.
b~use income tax limit has been raised I would like to SUbmit that this deficit
from Rs. 15,000 to Rs. 18,000. It is a very of Rs. 3349 crorcS is a sword of Dattloclcs
big relief. As. a result to tbe raising of this hanging on our economy. Would you try to
limit, out of 40 lakh income tax-payers, 10 reduce this deficit by curtailing the unnece-
lakh tax-payers have been exempted from ssary expenditure? Apprehensions are being
the payment of income tax. Similarly, honelt ex pressed in th is respect also.
middle class people used to face great hard-
ships due to tbe Estate Duty. Sometimes, Through the Social Security Scheme you
they had to seU their entire property to pay have provided relief to the landless workers
. Estate duty. Tbe Finance Minister has now and marginal farmers, who have been
relieved tbem of this hardship. neglected for centuries together. I welcome
~h.is whoJe·heartedly. Besides, you have
Sir, th~re is no doubt tbat this Budget Introduced the Crop Insurance Scheme
is the first step towards tbe modernisation wbich is a new year gift for aU the farmers:
of India and is in accordance with the I think it will give considerable relief to
promises made by our young Prime Minister . farmers.
to the people. It is tbe first stt;p towards
the implementation of our declared policy There are five lakh villages in India.
and we expect further relief in the time to N.R.E.P., IRDP and the programme for the
come. This Budget' proves that we believe removal of unemployment formulated by
in mixed economY. We give equal impor- our late Prime Minister, Srnt. Indira Gandhi,
tance to both the public ,sector as well as are very good progt'8mmes. The funds
the private sector. The delay in the .settinl allocated for them are quite ioadequate.
up of Dew units 'in tbe· private sector The Centre sbares 50 percent o( the expendi-
resulted in two disadvantages. One of them ture under NREP. I want that tbe Centre's
was tbat increase in production was staljed s~are shOUld be increased to 75 percent. It
and the other was that it afforded a scope Will provide considerable re) icC to the rural
for corruption in the department concernod~ people.
I, therefore, feel that the relief given by
the hon. Minister will 'help to a great exte.at I ,would like to say a few words about
Rajastban, to which I belong. It is the
in rebuildina the nation througb liberal
trade policY and it is a ria ht step in tbat ~nd largest Stat e so tar as tbe area J.
~rned and drink ins water problem i.
directioo. the bi,lest .prob!em or
tbat State.· Tho
While appreciatiDl the Baclaet, I would ar-test need or. b~'maG beina il driakilll'
 " G._rat Budg.~. 198$-86- CHAITRA 2, 1907 (SAKA)
GeMral Discussion. and
water but in Rajasthan it has not been
. p~ib,~e to solve this problem so rar. The
fWl4. 8Jlocated tQr this purpose are quite
inadequate. You talk of problem villages.
iii Rajasthan aU the villages arc problem
villases. Water is available thete at a depth
of 200 to 300 feet and it contains chloride
which causes tw~stina of differeDt parts of
the body. People suffer from ·Naru· disease
there. 'Hence, special attention should be,
paid towards:. providing drinking water in
the villages of Rajasthan.
..:unemployment is a major problem there.
~ We should pay special attention towards
setting up Industries in that State to solve
the problem of unemployment. Tbree types
of industries can be set up there : mineral-
based industries, agriculture- based industries
and forest-based industries. There are ricb
deposits of minerals in Rajasthan. A number
of mineral-based industries can be set up
thero. Cbittorgarh, to which I belong, is
rich in limestone. The demand for setting
up of ind.ustries there can be met by establi-
IbiDI cement complexes. Broad guage line
has been commissioned on Kota-Chiuorgarb
section. A number of cement factories can
be set up there. I sUagc)t that Govcrnm~nt
should take a decision for the setting up
of a public sector' cement factory lhere.
Zinc is also available there in large
quantities. A decision has been taken to
set up a Super Zinc Smelter Plant there but
no provision has b~D made in the Budget
for tbis purpose. I submit that it must be
set up during the Seventb Plan. Only then
it wUl be possible to solve the probJem of
unemployment in that State.
One of the' major reasons for non-
development of industries and agriculture
in Rajasthan is the heavy power-cut resorted
to there. Thero is acute shortage of power
In that State. The atomic power plant there
always remains out of order, as a result of
.. wbleb ,all works have come to a standstill. I
request tbat ,.thermal power plants may be
set'up in our State. Please look into tbe
matter 'at setting uP of thermal power plants
in 6ve ~i,vi'ions of Rajasthan.
'-Sir.. in the end, I would tike to 'lay tbat
in my constitueDCY, there is a large number
01 oplum~arowtnl farmers. It is lar,ely an
opiUOl-lrO'fina area in the COQDtry. but tho
Supplementary Demands ~8
. lor Grants (General) 1984.85
support prioe for opium is very low. It is
produced with great toiJ. Governments pro-
curement price may be reviewed so that
farmers are not put to any loss.
Sir, I would also like to submit that the
year 1987 is going to be observed in the
world as the Year of the Homeless. I want
that rural housing boards should be set UP
ror rural people.
[English]
MR. DEPUTY SPEAKER : Please wind
u~ now. If yow have some mOre points,
give them to the Minister in writing.
[Trans/ation J
PROF. NIRMALA KUMARI SHAK.-
TAW AT: In the end, I would like to say
that the taxes Jevied j n tbe Budget may be
reduced so that the people may get some
relief.
[English]
SHRI AMAL DATTA (Diamond Har-
bour) : This budget has made the dreams
of many Presidents of the Chambers of
Commerce come true. In fact, this has gone
beyond the dreams of quite a number of
them ; ~nd for that reason, if nothing else
the Finance Minister. is to be congratulated.
They had been thinking about it ; they bad
been talking about it, discussing it dreaming
about it. But even in their enormous dreams,
they never thought that all this will come
true by one stroke. This is done by the
government, by the party which has won an
unprecedented majority. Therefore, it is not
bound by any precedent, what had gone on
in the time of Nebru or Iodira Gandhi ;
tbey are not bound by it. So. tberefore,
they have made a clean and clear departure.
The only thing is that they (orsot to tell
tbe electorate; that they will make lueb a
departure.
They say, they will give a new lead. tboy
will give a new direction to tho country.
But, what kind of a new lead tbey will
give they forgot to, explain. There i. a
reason why tbey fot,ot to explain. The
leader of the partY is a youna man and be
is a 'man of a fow words. So, these thiD'$
arc not properly explained. But, DOW, We
soc wbat is the ~il'ectioll of tbls IO'ICJ.1lIQCQ
39 General Budget, 1985.86- MAkeH
G~ntral Discussion and
[Shri Amal Datta]
clearly ; and for that reason also the Financc
Minister has to be congratulated. He bas
given a sum total of the philosophy of tbe
ltuUDg Party in one document. So, as Mr.
Indrajit Gupta, before me, pointed out, we
are going to depart from the socialist prin-
chiles ; we may still go on giving lip
service to tbem ; we shall liquidate gradually
our public sector although until we have
totalJy done so, we shall go on praising
them; we shall give a goodbye' to the
Directive Principles of State Policy in the
Constitution for which our demand was tbat
tbey should be made justiciable; just the
reverse is being done now. Tbis is all right
if the ruling party believes in it; and they
have believed in it for quite some time
apparently.
From the tenor of the speecbes made by
the members of the ruling party, we find
that they are in total harmony with the
budget; here and there some of them may
Dot be satisfied with what is not being done
in their owa States or c~nstituencies ;
acnerally, thl!Y are very much satisfied with
tbis budget and they arc heaping praised;
sometimes it sounds to me, and I may be at
fault for that, like fulsome praises and a
aisparaaement of what had gone on in the
past. thIS is some them tragic. But, anyway,
even that is to be welcomed, If every body
wants to ma.ke a departure from the past
arid go on in the path which has been
'blazed by great lum"inaries, great world
leaders like Reagan and That...-:her, they are
welcome to do so. If that is tbe philosopby
of tbe party, let them only ma1{e it clear to
the people tbat is the philosophy because
ihIs budaet document is something which
the illiterate people of the country-oO per
cent of our people are illiterate-would not
be able to read and understand.
I have seen the papers. Evtrybody has
aeon them First day, tbey caDle out heaping
praises OD the bud,ct. On the second day,
,boy came out with' a djfferent Itory. I bi\ve
'asked the journalists about it, why their
~pers "have taken this volle lace. They sud,
wheD we wrote copies on the first day, we
ttlOi&Jht that tax cmemption and all that had
come; it was very good for us. On ~~
ICIC~ day, in the mornilll, Y!boo We w~nt
lO buy pecrol and keroSODO 'Wo found tbat
2l~ 1985 SupplerMnrary 'De»aanb lfir ~
Grants (Gtnera1) 1984;aS
tho'l'e was a ptlco hike r6r tbdaO twb 'items.
They understood that it had bit tHe c'omiii'OD
people. Of course, the "te"ss Is 'contrbl1eCt
by the capitalists; they
are bririgiOt '60th
kinds of views. Sb, we at~ co-nrused tild I
think the common people ot the COUntry 'are
confused as to actly what is the directlon in
which this government js takibs us tbrGiiih
this budget. That should be mad', clear.
THE MINISTER OF FINANCE ANi>
COMMERCE AND 'SUPPLY" tS1Il{1
VISHWANATH PRATAP SINGH): Only
one direction forward.
SHRI AMAL 'DATTA : ~ou have taken
a great jutnp. Nodoubt, you bave taken a
great jump, but whether it Is a forward ot
a backward jump tbat is our controversy.
There is a deficit of nearly Rs. 4000
crOTes. There is something Which has been
omitted relating to this defiCit, because it Is
at the cost of the State Governments tbat
the deficit has been contained at Rs. 4000.
Because if the Government had rollowed the
recommendations of the Eighth Finance
Commission and paid the State Governments
what was due to them according to those
recommendations in the first year, tbat is,
1984-85 tben tbis deficit would have increa-
sed by another Rs. 1500 crores. It would
have stood at Rs. 5,500 crOfes approxima.
tely. So, as a financial manoeuvre it is not
an intelligent endeavour; and what was the
original estimated deficit? That was Rs.
1650 crores. So, it is a jump of three and a
half times. 1 hope this year's deficit which
is Rs. 3349 croreS is nOt going to make such
a jump.
They have been able to contain inflation,
to some extent. 1t is true. The figur"s slow
tbat the consumer price hidiret have rlien
so much. They have riien by less (bab ~luit
they rose last year and yeair t)erOri. flie
the whOlesale price iridex is also I1ko lblt.
But is it re'f.Jectcd in tbe Uves of the itcopl'- ~
Do they teel that tbbir housc:noTa eXl$~.
have lorie doWn? Or, are t1i6y 'I0it.t* tip it
tbe same raft, approxl'male1y as 'ID die," yWifi
before? I think our 'exf)~r~enCe 'ta ttrtdredt.
~ut in aDY ca••, ,loiDI by your Ia~, I
~ ~ ~ I.' .. ~
• "" • ...j II /1 \JI" ,/0 ,1.,w
can say tbat )'OU have al~ClID. ,hroe re~uODJ
t:,~at~~~ ci:;c o:~. ~ ~ ~~
~ol oUtput ratc bas "i~, 1,1& ltOli
41 (jeneral ~uiJg41, JrJ85.86- CHAITtt~ 2,1907 (SAKA) Supplementary DemaJs 42
Genlral Discussion and for Grants. (General) 1984...85

i~ 'il big trade sap. lJi. trade lap came foodgrains. We have all ohances of increa-
elsewhere in the Budget, not at the same sing the food production, given the arable
ti~e. But it is a d~fJectionary moasure. land and given the technology, liven tHO
Very ,good. We do not propose to have a irrigation facilities we have, by at lout
~i~ tra~e gap again because the borrowing, twice what we are doing now, But .bere fa
lov~l which we have reached is already quite the machinery and the management of the
excossivc, external debt burden has reached form whk:h it will require ? Where wlll it
such proportions that there is very little come from 1 Not from this kind df a
opportunity of increasing it rurtber. or
course, we can take the path blazed ,by the 13.(Mlbrs.
South American countries like Brazil, Mexico ~udset and the philosophy and the objec.
and Argent ina. I do not know whether we tlves that this Budget bas shown. I just
can let away with it so easily as those made a calculation from the Economic
countries have been able to, apparently Survey that the petroleum gas that we are
because they are in the American spbere of utilising, we are burning away half that
hitluence ; we bave to shift our pOlitical ~uch. And for years, we have been nUbig
aUegiance also. It. If we are destroying our resources In
And then, unfortunately tbe Finance such a manner, then how can we ever hope
Minister t~ n'Ot very optimistic that these to reach that It;vel of self-sufficiency tbat
Arne factors will again come into play, in we always aspire (or talk about and -discuss?
orck:r to contain inflation. to the same extent
In 'the Economic Survey it bas been
as they did in the year 1984·85. There is a
said tbat our installed capacity in the coal
good rcason for sayiog that, because our
sector is 210 MT. I do not know whetbtr
crop increases aod fooograins have shown
that figure is correct, Given that the figure,
a pattern where we have got two good
is cor,rect, we are hoping to produce ISO
successivc years of good crop. Therefore, it
million tonnts. Last year, we produced 130
is likely that there wilJ be no increase. It
million tonnes. Is it not wastage of resour..
will come down; unless tbere is substantial ces? Is it not a fact that less coal production
increase in bow can inrJation be contained ? is hampering power production? I paid a
As for petroleum also, there arc no new
finds for it ; in the existing trend, there is
visit to the SHEL factory at Hardwar. The
person who showed me round, said that all
very little opportunity of increasing the
these turbines and other parts were lyiilJ
outpUt. I just do not know about those there because the State Electdcity Boards
thiblS. did not have the money to pay and tak~
In this budget, as in the previous them away. Here it is not Wost Bengal State
Budlets. there is no imasination. The little Electricity Board. But these are RajasthaD,
cOblmoolOnse which is required of any Punjab, U.P. State Electricity Boards. These
Government has never been displayed. This are the States where agricultural revolution
countr)' is a country which is dependant on has taken place, where income has sone UP
aaricultQl'e. ejahty per cent of the people and \'there you do not have a bad word to
depend on agriculture, and yet the emphasis say about the Governments. Theae Sta,..
is never Siven on agriculture or its infra.. cannot pay and take the machinery wbiola
sttUbtut~t wbl,ch ate necessary for aaricul- is lying there. I request the Plan~iDI
titre. Here asain tbe same thins bas been Commission to do something, to allocate' a
d<:me. We cannot compare ourselves with little more money 80 that the lbaChi-.~
ifeDlk~'ng. Taiwan or SouCb Korea as Shri for pow. ,eneratioD can be installed tbere.
lb4tajit Gupta said. Bnt we ean totnpaie This is the ~jtuation. There is no man....
ootiel_ with China, a big country ; with mont of the economy. There are to maoy
lOG 'mHlion bectares of lu-able ,land theY are pl~ces in infrastructure. in iodUltry" ..
pt()d\leib& 400 milllOb tonnet of fooda,ains. agriculture wbcrc little bOttleneck bas
removed here and there arad a little
'0 be
mata-
t Jam ~ that tbe Finance M irilstet' kaows,
,.oance ,bas to be done. And for tbat.
it. Aftd in our case, With two.thirds a.
tnt.kM land area mOR, 166 million hectares
otfaNbte 'Iadd we 'arc prodUcjq-Chis '1fJ8t
we bope to produce- l S3 million tOllllCl of
mcmey bas not been (ortbcomioa· YGQ._
tbat,R.I. 500 crores are beinl _de ...
for rcvamploa thermal powor Itations. 11Pa
n..,
 43 G~neral Buagl!t, 1985.86- MARCH 2~, 1985
General> Discussion and
(Shrl Amal Datta]
could have been thought of five Or ten years
alo, because all these have now become
practically junk by constant negligence or
maintenance.
We have created the public sector
because or our philosophy to which the
ruling party obviously did not fully subs-
cribe. In the Budget they have shown that
they do not subscribe to that. Earlier they
did not do that, but by their conduct they
did tbat, because no maintenance was made
of these public sector plants, whether it is
power or railway. In the Railway, we know
that 25 per cent of tracks are over-aged..
wagons are not available and all that. Yet
tbey do not have the imagination to remove
this infrastructure bottleneck. We find tbat
since the beginning of the Sixtb Five Year
Plan the railway wgaons have always been
in short supply. Although the Railway
Minister denies that, the coal and power
people say that. Because of shortage of
waBon., coal accumulation has taken place
at the pithcads resulting in less power
leoeration. But when we ask the Railway
Minister, he says that the railway wagons
are there-. Who is managing the economy?
Wbether it is one Government or a number
of aovernments, I do Dot -know. But the
fact of the matter is that by investing onlY
in those spberes where bottlenecks have to be
removed, where little gaps have to be filled
uP, you can increase the capacity of pro-
duction of this economy by at least two-
fold if not four-fold. The machinery ia lying
tbere without producing anything. So, just
a Uttle bit of medicine has to be injected.
And that has not been done.
In conclusion, I say, as Mr. Gupta said,
that our city, Calcutta, has become a slowly
dying city. Your philosophy is that every.
thina that is dying, -let it die. You have said
that you should not be burdened with many
unproductive investments of the past, tbat
you sbould throw them out and tbat you
should search for new areas like computers
and electronics. By the way, electronios and
computers can also be applied in aariculture
and maoy other fields. It is not that com.
puters are meant for entertainments, toys,
etc. The little injection tbat was being liven
to Calcutta, I am afraid, is now going to be
takeo away because of the new phiJosophy~
$upp/~mI!"tary
/)tmUIIIJs lor 44-
Grant' (GeMral) 1984-85
The oxygen supply whicH was there a little
bit, is goin, to be takon away. But I can tell
you that it has come at such a time when
everybody was hoping, even the West Bensal
was hoping, that some aid will come from
the Centre, the much needed, the much
belated aid will come to sustain tbe economy
to a Jevel which it deserves to attain. So,
thank you, Sir, for the accommodation liven.
13.06 brs.
[SHRI ZAINUL BASHER in the Chair]
SHRI JAGANNATH RAO (Derham-
pur) : Mr. Deputy Speaker, Sir, I rise to
support the Budget proposals for the year
1985.86. The Union Budget is not a mere
financial statement of revenue receipts and
expenditure but is an instrument of economic
policies and economic growth. The Budget
gives on account of the achievements during
the last year and projects the policies of the
Government for the future. The policies that
have been followed by the Government of
India during alJ these years. have made the
economy sound, self.reliant and self.. gene-
rating and the thrust that has been created
by the previous Budgets is now being main-
tained by this Budget. This year's Budget
is a forward looking BUdget. I do not agree
with my friend Shri Indrajit Gupta that it
is a procapitalist and anti-people Budget.
When a Budget is presented, prices natu.
rally rise it is a seasonal affair, an annual
affair, and the prices come down in a month
or two. In a developing economy, prices are
bound to rise. The prices can maintain the
level only when the production meets the
demand of the people~ Therefore, we need
not get unduly perturbed about the possi-
bilities of inflationary pressures being gene-
rated.
In the field of agriculture, we have done
very well. Innumerable successes have been
achieved. The Green Revolution has shown
to the world that oUr country is capable of
rising to the occasion. We have become not
only self-sufficient in food but have also
been in a position to build up a buffer stock
of 20 million tonnes. But this Groen Revo-
lution is confined to the two smaU State of
Haryana and Punjab. In other Sta~es which
are traditionally rice growing, lil\e Wes
Bengal, Orissa, Andhra Pradesh and Ta;n
45 General Budget, 1985.86- CHAITRA 2. 1907 (SAKA') Supplementary Demand" 4&
O.""al Dilcussion and for Grants (General) 1984·85

Nadu, there might have been rise in agri- in the basic industries, the core sector, they
cultural production but it is not matching are not doing well. For instancc, take power.
with the rise in those two States. Why is it We are short of power in almost every
so ? In these States also there is irrigation Statc. But that is the basic infrastrllct ure
potential, there are inputs, fertilizers are •for the establishment of any industry. with-
being supplied to them and are also being out that, we cannot expect to have industria-
subsidised by the Government, but still the lisation ; rather, its pace will come down.
production is not as much as in Haryana Even when wc plan a power plant for J,ooo
and Punjab. This position has to be looked MW, the generation is not even 500 MW ,
into. Secondly, the evaluation should be done less than 50 per cent. So much money is
on Block-wise basis. We should know how locked up and we arc not getting results.
each Block is functioning. We have 5,000 This aspect has to be looked int.o. We have
and odd Blocks in the country. All the pern'itted the industries to have their own
programmes are being implemented in every captive power plants. Yet, no industry has
Block. Some Blocks are doing well because come forward so far 10 instal captive power
of the officers who are sympathetic, sincere units. Even some of the steel plants have
and patriotic. But in other cases the officers not done it. For instance, RourkeJa steel
are very formal and they are not bothered plants has not done it. So, there is a fall
about the implementation of the programmes. in production. If this is the attitude of the
They only look to the financial targets. public sector plants. how C~lf1 they create
Agriculture is the base of the economy and a surplus and cCH)tributc 10 the financial
it is the duty of all tnc State Governments resources for the pJan ? I do !lot know how
to see that their agricultural production the Finance Minister or the Government
improves. It is not necessary that every of Iodia are going to aClivisc and energise
State should produce rice. Wherever they the public sector to come up to our expecta-
have got irrigation potentialities, they can tions ? I hope at least next year the Finance
raise other crops like oil-seeds, pulses and Minister will come forward and say that
other commercial crops which are more pro- the public sector has contrihuted probably
fitable than the traditional rice and wheat Rs. 1,000 crores towards thc plan resources.
crops. It is not correct to say that the budget
In the field of industry we have done has ignored Or forgotten rural development.
considerable progress and have become onc In fact, the rural people are our base and
of the ten industrial nations of the world. IndIa Jives in villages. If there is a slight re-
The industrial base is created by the small duction in the allotment this year compared
scale sector. We started with only two indus- to last year, it does not mean that all those
trial estates in 1958. I remember because I projects are being given UP. In the Sixth
was a Member of this House then. The Plan, while the State Government got Rs.
4000 crores, only Rs. (),OOO crores has been
first one was stated in Okhla and the second
one in Guindi in Madras. Later on, we
since allotted to them, in the current Budget
set up industrial estates at many other places thereby giving a surp~us of Rs. 2000 crores.
These Rs. 2,000 crores will certainly make
also. All those have been doing very well
up the deficit. If necessary the Supplementary
and have become the industrial bases of the
Demands for Grants can also be giving.
country. Oil that basis, industries have
Therefore, there need be no fear on this
coin~ up, including heavy industries, and we
are in a position to export industrial goods, count.
engineering goods, to the· outside world. Coming to income-tax, it is aJ]egcd that
We sbould be proud of that. So, whY should
it is pro-capitalist and my hone friend, Shri
we become pessimistic and say we are going
Gupta, said that it encourages MRTP com-
backward ? We are not going backward we panies. Shri Gupta will remember that last
are going forward. Lok Sabha we amended the MRTP Act
So rar as the public sector is concerned, exempting the MRTP companies for opera-
we Wanted to take it to the commanding tion of sections 20 and 21 which stipulated
heights. There we have recei'Ved a set back. on the enquiry being made, when an MRTP
Bven thouSh heavY investments are made house goes on expanding its 4ctivities or
 47 t?e.'J;'1tl! B'!t1iet, 198~.86- MARCH~,
GfMrai DlsClUs/on and
[Shrl Jagannath R~oJ
filr setting new industries. That privilege
was given to them already. So, raising the
capital lfmit of M R TP companies to Rs. 1~
crores will not load to mote concentration
of economic power in the hands of these
houses. We have not bid good-bye to article
39, (c) of the constitution. We wiJJ sec that
it is implemented.
There is no point in saying that the
NRTP companies have grown. If any indus-
try is successful and prosperous, it will
plough back the profits and try to expand
tao unit. So. the assets of the company
iocrease. which are owned by the sharehol-
ders. Lot it be understood clearly that the
object of the MRTP Act is not to strike
the monopoly houses; it is only intended
to regulate the operation of tbese companies.
It is not correct to say that there is too much
concentration of economic power jn the
huds of these companies a.fter this Act was
passed in 1969.
Our basic sector both agriculture and
industry, are doing well. So, th£re is no
reason for any of us to become pessimistic.
When some relief has been given to some
sectors, some imposts have to be there on
SQme other sectors. So. some section of the
~ple h~"e to bear the imposts. E~ery
iJ».opsh direct or indirect, will have its
eftect OQ tbe price level.
It is bound to. Even the prjce~ of vege-
table h.~ gone liP because of the rise in
t~,,< ·",i~ of diesel. It is not that every
Ve.8~tabl~ V~Adc.r brings them from the mar-
~'~~' .b,v trucks but the prices are bound to
iQc~~~eJ because of this. Because of this
fJlc{~as~ we sQoulc1 not foel t~at the Budget
i$ ~x\flati91l~ry in character.
In the Budget Rs. 3,349 crores deficit has
been left uD~overed and to cover the deficit
OD further attempt has betn· made to raise
any levl~. Perhaps the Finance Minister
feelj t~t it can adjust itself Without caulin,
itinlti~~ary trends in the country. Theref<?r".~
OD the whole I would call it a good Rudaet
1 dO Dot want to use the term 'hest' because
thti wih' offeJ)d' Mr. Oupt~. It is a lood'
~~~~ ~oo~ 'i,ii all i'ts. p~~tS.1 It has "ti.~eq
ca8e of all the aspects of' the economy to
mate it sound,' self..$utfiCient aQd ~~lr.geno.
1985 Sup~/6",e"lar)' Demands Itl,r 48
Gralttl,., (General) ~!i8~·85
rating. We are now ready to enter the
Seventh Plan with the hope to buJJd up th,e
"base for achicvina the goals set in the S~vc;nth
plan.
Pandit Nehru was the architect of mo-
dem India. He introduced plannio8 in the
country; When we· got independence we were
not sure in which direction the country
should move. It was with bas farsight that
be devised planned economy aimed at deve-
Japing the economy on the agricultural front.
industrial front and also at developing the
the human personality. The work of this
architect of India was followed up by his
illustrious daughter. I would call her the
builder of modern India. She followed the
path laid by her IlIu~trious father. She went
on building the country, but unfortunately,
she fell a victim to assassine, bullets and
that task of building tbe country bas now
fallen on Rajiv Ji. I am SlIre he will build
the ec.onomy on its sound edifice. Tberefore,
we are optimistic that India is on forward
march and that we are bound to reach tbe
. goal in the coming years.
SHRI R. PRADHANI (Nowrangpur) :
Mr. Chairman, Sir, I risc to support the
Budget for the year 1985.86.
First of all I would like to congratulate
the Finance Minister on having presented
the popular Budget. The Budget stands on
sound footings on sound economic thinking.
Agricultural production during the year
1983-84 as weIl as during the year] 984. 85
was 151.5 million tonnes, Industrial pro-
duction increase~ by 7 per cent, power .
generation by 13.5 per cent, coal production
by 6.9% and the movement of freight in-
creased by 2.3 per cent. Our export trade
increase by 23 per cent while our import was
up by 14 per cent.
] welcome the proposal of crop insu-
rance, because it helps the smalI and margi-
nal farmers, who are in large number in our
country. I also support the social security
scheme f~r the landless labourers because
they too comprise large number in our lower
strata of society. The raising of exemption
limit in income tax from Rs~ 15,000 to
Rs, 18,000 is also a ,:"elcome measure. It
wm bendfit ten laths of income.. tax payers
who comprise majority of lower middle class
~oPle. ", '. , ' I '"
\
49 G'.fal Budg,t, 1985.86- CHAITIlA 2, 1901 (SA.KA)
Genlral Discussion aIId
I have got some specific suggestions to
make. In the Budget presented to the House,
the Government proposes to give free educa-
tion to the gi~ls. In this context, I would
like to draw the attention of the Government
that in tribal areas, especially in the tribaJ
areas of Orissa, the percentage of drop-outs
is about 92 to 95 per cent at primary school
level. The state Government is trying its
best to construct hostels and is making
arrangement for food and clothing for these
children. The tribal people are extremely
poor, and proverty prevents these people
from educating their children. But due to the
constraints or resources the State Govern-
ment has not been able to cope up with the
huge demand of expenditure and therefore,
the state of affairs continues to be as it is.
So, I draw the attention of the Finance
Minister to the need to give some Central
assistance to this tribal education so that the
dropout percentage. viz, 90 per cent, can be
reduced to a considerable extent.
Secondly, I come to drinking water.
Drinking water is a basic amenity required
by any citizen of this country. We are in
the" midst of this International Decade for
Drinking Water. Surveys were carried out
about 1().15 years back and the probJem
viUages had been identified. About 37,000
villages are yet to be covered as they were
already identified, but, Sir, I would like to
draw the attention of the Government to
the fact that the surveys conducted about
1()"15 years back have become quite outdated
because the ground level of water has gone
down from 25 metres to 30 metres in most
of the villages and I can say that almost all
the vi lIagos in -summer suffer from this
crisis. They face this crisis mainly on drink-
ing water front. So, I would like to request
the hon. Minister to just order for a survey
again and find out and identify the villages
which are suffering from the Jack of this
drinking water and at least provide one tube
well for each viJ]age so that they can have
at least drinking water, jf not other thing,
J DOW come to the subsidy in the bud-
get regadiog support price and remunerative
price to the agriculturists. In this year's
budFt we are spending from Rs. 8S0 crores
to lts, '1100 crores for this suQsidy mainly for
paddy. Paddy is the main. crop grown in
this country and wideJy ~~~um~ by us,
Suppl,mentary Demantb .'0
for Grants (G.nlra/) 1984~85
Indians, This support price is genetally
meant for the poor classes of people, speci-
aUy small farmers and marginal farmers.
Genera])y some Opposition Parties say that
this is meant for kulaks, but I mean to say
that it is not meant for the big farmers
hecause they can wait for six months to one
year to see that they glt the better price and
they gO to the market when they get only
the higher price. But the small and margi-
nal farmers are ridden witb loans and their
personal requirements and so immediately
after the harvest they go to the market and
seU their produce and become bankrupt, with
lesser prices at distress sales. So, it is
essential that these support prices should be
remunerative according to the cost of pro-
duction and therefore, I request that the
prices of these foodgrains should be kept in
mind and should be made remunerative.
I would draw the attention of the Govern-
ment to the (act that during tbe la te Seven-
ties production of sugarcane was at a very
high level and due to the wrong policy adop-
ted by the then Janata Government, pro-
duction fell down and so it has to be raised
again by giving the farmers rernunera tive
prices. Therefore, let US take a Jesson from
this and bave good remunerative prices in
respect of foodgrains and sugarcane.
[Translation]
SHRI TARIQ ANWAR (Katihar) : Mr.
Chairman, Sir, the Budget for 1985.86 pre-
sented by our Finance Minister, Shri Vishwa-
nath Pratap Singh, truly ref1~cts the image
of a strong and self reliant India-· an image
which we have formed in our minds and
about which our Prime Minister has spoken
so often. This kind of Budget was a must
(or building such an India and I congratulate
the hone Finance Minister on presenting
this budget at such a juncture when we are
facing challenges. I shall go still further to
add that no better and more balanced a
Budget could be presented at such a crucial
time and in sucb circumstances. Many
aspects of the Budget have already been
discussed and I do not want to go into them,
Being a young man, I would like to draw
the attention of the hon. Finance Minister,
through you, to tbe roremost and the basic
problem being forced by the youth of the
country-the problem of unemployment.
51 . . . .1 ButJrtt 198M6- .. MARCH 23, 199'
(hruwal D(Ic",,81on and'
l SIvl Tariq AlfWQr1
The problem of unemployment is not confi-
ned to our country only ; it is a wOrld-wide
.,henomenon. Unemployment is of two
kinds, so far as our country is coneernec1.
In the first category all the youth who are
educated, and tbe second category includes
a vast number of uneducated youth living
in rural areas, who are living below the
poverty line.
I am glad to note that in this budgct the
programme undertakcn by our late Prime
Minister. Smt, Indira Gandhi, to make the
educated un~mployed youth stand on their
own feet by giving them financial assistance.
Under which it was envisaged to improve
the economic condition of about 600 youths
in each district by giving them financial
assistance of Rs. 25,000 each, has been
further ex:panded. That amount has nOw
been increased to almost doubJe. Obviously,
it will benefit more the educated unemployed
youth. I would like to submit to the hOD.
Finance Minister that about 30 percent, of
our youth are i~ the age group' of 15 to 30
years and this is the group which is worst-
affected so far as unemployment is con-
cerned. If we want to help such a vast
mUltitude, this allocation appears to be too
meagre.
At the same time, I would also like to
point out that the major handicap experien-
ced in our programme of helping to unem-
ployed youth is that no training is impacted
to them. In the past also, this aspect was
Dot kept in view. We do provide financjal
assistance to thorn, but no arrangements to
impact training are made to ensure proper
USe of that amount. I want that the hone
Minister mUst pay attention to this aspect.
However, the other programmes included
in this budget for tbo uneducated rural youth
would go a long way in helpin. them.
Especially, the allocation under the agricul ..
tural rural development programme has been
raised to Rs.932 crores. Similarly, the schemes
for rural landless labour, rural "ter supply,
schemeS for scheduled castes and scheduled
tribes or the 2O-Point Programme, which
is the programme of our party, have be~
accorded priority next only to Dtfel1~.
This is the most commenciable step beQause
whatever we do, we w.ant its direct -bendt
'0 ~ ~ho rural peopb", When" foa:Uy
Supplementary DemaNb for 52
Grants (Ge1U1rai) 1984-85
aim at carrying the bene8ts of the program-
mes to the viIJages, our Implementation
machinary, through which we reach the small
farmers and the landless in the villages,
needs to be leared up. There has always
been a complaint that the intended benefits
do not reach them.
So far as' the 20-Point Programme is con-
cerned, we want that the Budget allocation
. for this programme should be raised. The
pace of the implementation of this pro..
gramme arso needs to be accelerated Bro-
adJy, this Budget will give a fiUip to indus-
trial production in the country. Particularly.
the concessions given to the electronics
industries will lead to modernisation of the
country. We also welcome the concessions
given in income tax. It will provide relief
to the middle class peopJe. ..You have raised"
the income tax limit from Rs. '15,000 to
Rs. 18,000, but it will not benefit a large
section of workers employed in the public
sector. If we really want to benefit them.
This limit should be raised further. It will
increase the purchasing power of tbe people
on the one hand, and on the other, pro-
duction in different fields will also 80 uP.
You have withdrawn the annual licence
fee on radio and television. It want that
similar system should be evolved in respect
of vehicles, like scooters and mopeds etc.
where life Is not more than 10 years and
which are used particularly by the middle
class people. In case the amount of tax
to be charged on such vehicles for the next
ten years is collected at the time of the pur-
chase of the vehicle, the harassment experi-
enced by the middle class people in setting
tax-tokens every, year would be obviated.
In this manner we can provide reHef to the
people of this class. A beginning can be
made in Metropolitan cities like Delhi,
Bombay, Calcutta, etc. This is my sub-
mission. .
So far as the question of giving fillip to
the public sector is concerned, the report
of the public sector undertakings for the
year 1983.. 84 has just now been received.
An investment of Rs. 35.411 crores had
been made in this sector till last year. The
report shows that this capital has yieJcled
a net profit of' Rs. 245 crores only, whereas
lit the rate er ~o ~er~~t, the. ~et PfoSt
· 53 G'Mfa/ Budget, 1985-86- CHAITRA 2, 1901 (SAKA) SupplefMn'QrY D~ S4
c;,,,,,.a/ Dllcussion and lor Grants (04MraJ) 1984../Jj
should have been around Rs. 3500 crores. masses of the country had been expecting
If industries in the private sector can earn that you would take revolutionary steps •
.good profit, why can the public sector Our young Prime Minister and his Govern ..
industries not earn profit inspite of getting ment have high ideals and we expected that
all the facilities. We must ponder over it. a basic change would be brought about,
If we get adequate return from the capital because a vast section,of our population is
invested ill the public sector industries. poor and depressed. Lakhs of peopJe sleep
the paucity of resources could be obviated on the roads even today. They have no roof
to a greater extent. The deficit in our to cover their head. MiJljons of youth are
budget can be made good from the public unemployed· in the country. They possess
sector industries alone. This is such a high educational degrees and qualifications,
vital sector that the Government should but they are leaving for European and
pay immediate attention to it. The other countries, because they cannot give
employees of public sector industries are the beneBt of their skill and expertise to
getting such handsome salaries and other this country_ It is because of the fact that
benefits, that nobody can have a grouse there are no opportunities for them and
about it. But if an industry is not showing there are no means to utilise their expertise.
proper production, its employees and mana· For this we need sOcialism, a socialism in
gement should not be allowed to enjoy which there is no place for free enterprise.
all these benefits at the cost of the public We had expectations that you would bridge
exchequer. The responsibility for increasing the gap between the rich and the poor, and
the productivity in these industries should it needed a strong step, ~ut, no such thing
be borne by the management. They is visible in the Budget. As I said, this
should be given freedom to take decisions. is a very good Budget as per the programme
At the same time, they should be made of the congress party, but you wi1l have to
answerable as to why our public sector think not from the point of view of the
industries are running in loss. .congress party but from the point of view
of the entire nation. If this is the inter..
With these words, I once again request pretation of the socialism for which our
the Hon. Finance Minister to allocate more people made sacrifices, the socialism which
funds in the budget especially for the un-' Pandit Jawaharlal Nehru had visualised,
employed youth and efforts should be made that the gap between the rich and tbe poor
to solve the problem of unemployment should increase, then it would be a great
which is the basic problem of our country. injustice.

SHRt ABDUL RASHID KABULI In this connection, 1 would like to

(Stinagar): Mr. Chairman, Sir, first of
aU I would like to say that the Budget for
1985-86 presented before us is the best as
compared to the budgets of previous
Governments, so far as the ideology of the
Congress is concerned. The crop insurance
policy announced by you is an effective
step for the welfare of 80 percent people of
this country who depend on agriculture, and
I congratulate you for this. Our farmers
have always been victims if natural calami..
ties. " We have been raising this question
in Parliament time. and again that a solution
to this problem should be found and,.I
think. this is a timely step.
I ,also" appreciate the steps taken in
reprd to women's education. But, at the
same time, I would also submit, that the
make a submissjon tbat when India
achieved independence in 1947, 'Sber-E-
Kashmir', Sheikh Mohammad Abdullah.
enacted a legislation and the object of that
legisJation was 'Land to the Tiller'. He
brought forward a revolutionary legisJation
under which the entire land wbich they were
cultivating, was gjven to tbe tillers, who
were the tenant and had no ownership
rights, the landlords were taking undue
advantage of their hard labour and were
keeping them as bonded labourers. At
that time, we adopted that meuure and
the land went to the tillers. Can I ask.tlle
Congress Government whether they ha¥o
taken any such step since 1947 ill r.poet of
agrarian refor:ms? Have you adopted
any measure to weaJ(on the stroDaboldror
tbis landlord .aeotrr in tbe oouatry? 1k
55 GlMrtd :Budg,t, 1985..86- MARes 23. 1985
O••,.al Discussion tIIId
" ..~
(Slrri Abdul Reuhld Kabul11
progress of our country depends OD our
agrarian reforms.
At the same timc, I would also like to
point out that you have done injustice by
raising the prices of petroleum products
which has resulted in the increase of the
prices of a wide large of products from
petroleum to kerosene. It bas also resulted
in increase in frcights and bas affected
passengers also. The loss to the people of
tho country on this account would be far
more tban the income which accrues to you,
because transport is not a luxury but a
necessity. Even today, our entire Commu-
nication net work and our development
depends on motor transport. Therefore,
I am of the view that the price of petrol
should not have been raised because some
people are taking undue advantage of it
whereas tbe consumers at all levels would
be adversely affected and they would
suiter bea vily.
There is another thing which I want to
submit through you. The policy framed
by tbe' Central Government is meant for
the entire country, for all the states and
your programmes have raised some hopes
in tbe people, but tbe benefit of the pro-
grammes launched by you have not reacbed
throughout tbe cO\l1ltry. I would like to
bring to your notice that none of the pro-
grammes drawn up for the betterment of
Jammu and Kashmir has been implemented.
The Central Government arc giving sub-
stantial assistance to the Government of
Jammu and Kashmir and we are grateful
to you for tbat, but it has not given anY
material benefit to the common peop]e in
tho State and the State Government bas
not been able to give its benefits to those
who actually deserve it and, instead,
. the
Government is utilizing the entIre amount
in an improper way. In this context, I
would like to say that we have suffered a
tremendous loss in respect of tourism last
year and tourism has suffered a set-back
continuously for tbe last two or three
ycars Tho Central Government bad sont
a ~ there. Tho crops were hit by
hailstorm and thousands of farmers were
. affected. A few days back, when we were
going around our constituency, bad not
been Biven any compoosatjoD for loss
Suppl,mentary Demmub ,S6
lor G,.ants (G.n,ra/) 1984.85
caused due to we hearod complaints from
the people that they hailstorm called 'ZaJa-
wari' • The team was, of courses, sent
there. Now, either tbere has been Some
negligence on your part or the amount
given to the State Government has not
been put to proJ)cr usc. This is for you
to see. Similarly, you should provide
sufficient assistance in tbe matter of tourism
as w~ll. This task was also entrusted to
the same team. In addition to this, you
paid Rs. 2S0/- per month to the house-
boat owners (or six months. I would like
to submit that if the Central Government is
really interested in tbe development of
Jammu and Kashmir, which is a backward
state and a very backward pocket of the
country, then these aspects must be attended
to. I would like to say without reserva-
tion that all your schemes in Ladakh, the
Kashmir valley and tbe hilly areas of
Jammu are proving to be a failure and
they are not being implemented at a11. I
would go further and say that democratic
do not operate tbere and the people have
lost faith in tbe Government. The Central
Government should take note of the irregu-
larities committed by the State GovernmCllt
did there during the ParI iamentary elections.
The people of tbe State did not repose
confidence in the Government of Ghulam
Mohammad Sbah in tbe Parliamentary
elections and both his candidates lost tbe
elections there. Tbeir candidates Jost
tbeir security deposits in all the Assembly
segments of the Parliamentary Constituencies
'represented by the Ministers. The people
of the State have lost their link wjth the
Government. The relationship which
ought to exist between the people and the
Government does not exist there. That is
why I went to caution you in this matter.
You are. talking of taking the country
forward. It is true that the CODgress Govern-
ment is striving to create more and more
employment opportunities in the country..
But, the persent Government 1n OUf State
has dissolved the Development Board and
other constitutional institutions there and
they have recruited ten thousand employees
within a period or six months. Those
possessfng B.Sc. and M.Sc. dearees have
been ilDored in these appointments and
those who have tailed in Matrlc have bee•
provided with emploYJDent. I am not sayjna
10 out of a foelina of omnity. It is a fact
 51 General Budget, 198$-86- . CHAITRA 2. 1907 (SAKA) SUPp isl1I8Rlary Demands 51
General DisclUslDn and
Since the Central Government have close
links with the State of Jammu and Kashmir,
I want that our Finance Minister should
lee that our programmes are completed.
What is their plight today? All our demo-
cratic institutions, such as Municipal Com-
mittees, District Boards and Panchayats
have been dissolved. During Sheikh Sahib's
time the district was treated as a unit for
development in the State. District Develop-
ment Boards were constituted and M.Ps.,
M.L.As., Members of Panchayats, and Mem-
bers of District Board were associated with
them and the work relating to district
development used to be done on their advice
and decisions taken accordingly. Now,
Members of PaJiament and even MLAs are
not taken into confidence on regard to
whatever expenditure is being incurred on
developmental work there. They are not
being invited even to the meetings.
Our Kalakot Coal Mine is State owned
undertaking but there is a firm by the name
of Tycoon Coal Ltd. in which.* has been
made the partner. Coal was supplied to
that firm at 25 percent less price due to
which the State Government has suffered
Joss to the tune of Rs. 1 crore~ **
[Eng/ish]
MR. CHAIRMAN: He is not a Mem-
ber of this House.
[Translation]
It will not go on record.
[English]
He is not here to defend himself.
[Translation)
SHRI ABDUL RASHID KABULI:
So far as development of the State is con-
cerned I would like to say that the people
of Ja~mu and Kashmir should also be
given the right to have a popular Govern-
ment as is being enjoyed by the people of
other States in independent India. Today,
there is a Government of defectors in our
State. This Government has not ~ acce-
pted by the people in the Parh~entary
elections.
•• Not recorded.
lor Grants (GeMra/)1984.8S
[English]
SHRI JANAK RAJ GUPTA (Jammu):
As the hone Member speaking on the Budget
or is he speaking on the format jon of the
government?
[Trans!ation]
SHRI ABDUL RASHID KABULI:
There is acu te shortage of power in Jammu
and Kashmir. It has great potential for
power generation. Our State can generate
3000 Megawatts of power by which not only
the S tate but the country also can benefit.
There is at Uri Hydel Project Scheme in our
State. It is very big project by which tbe
entire country will be benefited. I would
like to mention that th~ Central Government
have formulated schemes only on paper.
These are not implemented in the State.
Our Uri Project is lying pending, Doolhasti,
Sala), Thein Projects are also lying pending,
Work has not started on Doolhasti Project
in Jammu. I would, therefore, like to say
that you should give up full assistance for
completing these projects so that our State
and the entire country may get the benefit
of this power potential.
[English]
SHRIMATI BASAVA RAJESWARI
(Dellary): Mr. Chairman, gir, I am grateful
to you for giving me an opportunity to speak
on the General Budget for 1985-86. I also
thank the hon. Finance Minister for pre-
sentation to the House a truely productive
budget proposal. I would rather call it a
people's budget planned with a farsighted
imagination. I feel proud while supporting
these progressive proposals.
The hon. Minister has made a beginning
to give relief measures to the farmers, namely,
crop insurance. But he has covered only
paddy and wheat. I would like that cotton
and groundnut shou1d also be included in
this scl1eduJe. Cotton and' groundnut are
cash crops which involve heavY investment
and they are also sensitive crops. Therefore"
I would request the hone Minister to includo
these two crops under the crop insurance
scheme.
Sir, I come from an area where lot of
j9 G.".'1I1 J1wJ,et~ 1985.86- MARCH 23, 1985
a..rlll Di6ellSsion and
[Shrlmatl Ba8QVa RaJeswarlJ
long staple and extra long staple cotton is
gtown. t,hat is, Bellary and Raichur districts
in lCarnataka under Tungbhadra project.
The farmers are put to much inconvenience.
The prices of cotton have fallen and there
is no proper purchase in the market. The
Cotton Corporation of India which has to
purchase at the support price of Rs. 600 per
quintal are Dot making the purchases effec-
tively. Therefore, we request the government
to allow more cotton lint to be exported
se that indirectly farmers get remunorative
prices.
THB MINISTER OF FINANCE AND
COMMBRCE AND SUPPLY (SHRI VISH-
WANATH PRATAP SINGH): The mem-
bers would be glad to know that we are
allowing export of one lath more cotton
bales. ' I come to Industrial Policy. I would ]ike
SHRIMATI BASAVA RAJBSWARI:
(BelJary): The Cotton Corporation of India
is SUPl'ort to purchase at Rs. 600 per quin-
tal whereas they are only purchasing at the
prevailing market price and that too not
the entire quantity which comes in the
market. They are purchasing only a limited
quantity. These complaints have been recei-
ved from the Agricultural Producers Markets ..
Therefore, I would request the government
to look into the matter and try to see that
the CCI purchases the cotton at the support
price.
I would also like to point out that the
cost of production has also increased. So,
I' would request the hon. Minister to increase
the support price of cotton by Rs. 100 more
and,make it Rs. 700 instead of Rs. 600 per
quintal. Much has been talked about remu.
nerative pri,ccs. But I want to say that the
Agricultural Prices Commission consists of
only a few people. There was a proposal
to see that farmers' representatives are also
included in the APC. I would also like to
request the Government to re-design it is as
AgrIcultural Costing and Prices Commission
because there is no costing aspect taken into
account as far as agriculture produce is con-
cerned.
At the moment it is only a price fixa-
tion body. Instead of that there should be
a systematic· costing body as in the case of
industries where the Bureau of Industrial
SuppJemMta1', DlJmands 101' 60
Grants (General) 1984-85
Costs and Prices goes into the. economics of
cost of production and so 00. This bas got
to be considered. This body should also
work on the same lines; they should take
into consideration the cost of production,
investment on land, rate of interest aDd also
depreciation managerial cost, etc. All these
things have to be taken into consideration
whde fixing the prices for various crops.
Certain proposals have been received
from State Government regarding the price
fixation of each from. While fixing prices
for next year we request Government to
redesignate this body as Agricultural Costs
and Pricing Commission and also to have
a representative of the farmers in that body.
They should fix the price as already propo-
sed by various State Governments.
to say that each district should have a big
public sector undertaking so that unemploy-
ment problem is solved to some extent.
While doing it, Agro.based industries, depen-
ding upon avaiJability of raw material,
should be developed. Due to increased
irrigation potential which is available in
various parts of the country now many
varieties of agricultural produce are grown
in various areas, which are vital to various
industries. Therefore if the raw material is
available there and jf each district has a
public undertaking there, than, unemploy-
ment probJem will be solved to sOme extent.
I would like to say that at Bellary, the
Vijayanagar Steel Plant should be immedia-
tely started. About the need for the setting
up of the Vijayanagar Steel Plant at Hospet
we have had several discussions in this
House. I come from that area. We have
been told in the previous session that the
proposal, In the light of latest technology
and feasibihty, depending upon raw material
availability and infrastructure will be recei.
ved by the Government. I do not know
whether the proposal has been received or
not. But I find from the Budget Papers that
very little amount is set apart for this
project. I would like to say that people are
laughing at us. It is not only people who
arc Jaugbilll but the ore is also laughiq at
us because we have not utilised that ore
which is there in abundance. Our late Prime
Minister Shrimati Indira Gandhi laid the
 ·61 General Budget, 1985-86- CHAITRA 2. 1907 (SAKA)
Gtmeral DlscussioR am:l
foundation stone of this project long. bank.
I am very much pained and hurt to speak
about the Vijayanagar plant. I request the
hone Minister to get the necessary clearance
from technical experts and to include it in
the 7th Plan.
So far as tbe power position is concer-
ned, the Kamataka power position IS becom-
iog worse.' I hope it will become still worse
during summer season and many of the
industries will be dosed. I would like the
OO'femment to take up an intensive survey
of aJI the mini hydro.electric projects throu-
ghout the main canal areas of each project
and give sanction immediately.
Regarding Raichur Thermal PJant only
the first stage has t-.een completed and com-
missioned. The technical report in regard to
the second and third stage is awaited. I
would like the Government to clear the
second and the third stage and see that the
work is started immediately. If that is done,
Karnataka will be in a better position as
.far as the power situation is concernod.
Karnataka wiJI stand to benefit j( these two
units are cleared and if they come into
production.
14.00 m.
I would like to thank the Government
for baving introduced the Social Security
Scheme to cover the risk of deatb by acci-
dent : this would help the poor section of
the society, landless labourer, sma]] and
marginal farmers etc. In fact, these people
are very mucb affected by accidents a t the
time of harvest etc. Sometimes they are
bitten by scorpions, snakes etc. I would only
make one request that instead of covering
only 100 districts, the entire country may
be covered by this Scheme.
Schemes like NREP, IRDP, RLEGP etc.
are no doubt very good, but I doubt whether
the quality of work is maintained in respect
of these schemes. The results that we achieve
under these schemes disappear after some
time for one reason or the other. I would
li~e to mention that at the root level, a lot
of funds ar" still being misused. There Is
D.ced for proper check. It is good tbat we
have liven aD impetus to these schemes in
tho PleaeD.t bud,iet proposals, but I would
request tho Oovommont to soc that the
SUppleIMRltuy lHma"ds 62
for Grants (G~naral) 1984-85
quality of these schemes is maintained aad
misuse of funds at all level checked properly.
I would further request that all the
villages should be electrified irrespective of
any constraints at the Government level by
the end of the 7th Plan. Only a few villages
remain unelectrified. These should be cove..
red by the end of the 7th Plan. All the
rural as also urban areas should be provided
with sufficient potable drinking water by
the end of the 7th Plan.
As you know, Bangalore is a beautiful
city and a Jot of infrastructure exists there
to decJare it as a science city. I would
request th~ Government to declare Bangalore
as a science city as also convert Bangalore
aj~port into an international airport.
Government have announced a number
of concessions for electronic industries. I
would give a call to all the entrepreneurs to
rise up to the occasion and take up an
sorts of electronic industries by making use
of the incentives, and thus present a chal]c.
nge to the electronic industry in other
countries of the world.
With these words, I su pport tile
Demands.
[Translation]
SHRI PRATAP BHANU SHARMA
(Vidisha): Mr. Chairman. Sir, I rise to
express my views in support of the Budget
for the year 1985-86 persented in this House.
First of all, I would] ike to congratulate the
Finance Minister on having presented a bold
Budget, which will heJp increase production
in the country and safeguard the interests
of the poor and which is inkeeping with the
aspirations of the peopJe.
Most of the Members here and certain
newspapers also have expressed an appre-
hension that we may have to face great
difficulty due to tbe deficit of Rs 3,,349
crores shown in this Budget. In tbjs
connection, I would like to say that a
deficit of about Rs. 4.000 crotes was lett
uncovered in tbe last year's Budget also aad
the same practical approach bas been adop-
ted by the Finance Minister thia year ..
well. So, there is no scope for having the
apprehension that deficit financing win ran
inflation and there wUt be all unpr~.-nted
63 G_ral Budg~t, 1985-86- . MARCH 23, 1985 Supple."tary Demands for M
6m,ral Discuasion and Grants (General) 1984-85

[Shri Pratap Blum" Sharma} benefit the landless, the poor and the margi-
nal farmers about whom we had never
price-rise. The reason is that when there thought of so far. If any accident occurred.
was a deficit of about Rs. 4,000 crores in there was nobody to help 'the aggrieved
the last yearts Budget, the wholesale prices family. It is really a very commendable
of commidities bad increased by about 5 step that our Government will pay Rs. 3,000
per ceot as against the 10 per cent increase per year to such families. I suggest tbat the.
in the year prior to tbat. Hence, I am of Social Security Scheme should be intro-
tbe view that tbere should not be any duced in an the districts of the country
apprehensions in this regard. during the Seventh Five Year' Plan. This
scheme will be implemented in phases, but
I would also like to congratulate the if it is implemented in the entire country
Finance Minister on the steps taken by him during the Seventh Five Year Plan, we sball
for simplifying the taxation procedures and be 'able to provide social security to the
giving relief in taxes. All these decisions workers and farmers.
have been ta ken on the basis of suggestions
received from people for the last 15 to 20 So far as the 20.Point Economic pro.
years. Members have also been pleading gramme introduced by the late Prime Minis-
constantly in this House for reducing the ter, Smt. Indira Gandhi, is concerned, the
taxes and for the simplification of taxation provision of 4,900 crores of rupees shows
procedures. By the proposed changes, about 18.3 percent increase over tbe last year's
10 lakh tax-payers, whose annual mcome budget provision, which indicates that our
is less than Rs. 18,000, will be exempted Government under the leadership of Shri
from the payment of income-tax and there Rajiv Gandhi is committed to implement
will be 50 per cent exemption for those on priority basis all those schemes such as
whose annual income is Rs. 20,000. Th.e lRDP, RLEGP, NREP and TRYSEM which
exemption will become less with the increase had been introduced by the grea t leader of
in income. This shows that the Finance our country and the Messiah of tbe poor,
Minister had this in mind that it was not Smt. Indira Gandhi. Shri Indrajit Gupta has
necessary to give more exemption on higher just now pointed out that the cut effected
incomes. in funds for IRDP, NREP and RLEGP was
a matter of concern. This cut comes to
On the one hand, the interests of con- hardly seven or eight crores of rupees. I
sumers and the common man have been would like to point out that the provision
safeguarded in, this Budget and on the made in this Budget in respect of agriculture
'other, commendable efforts have been made and the allied sector is much higher as
to increase agricultural production and to compared to that made in the Budget for
strengthen the economic base of the country. 1984-85. These schemes have been put
under the bead 'Agriculture'. The Finance
1 would like to congratulate the Finance Minister bas given an assurance that rural
Minister on introducing Crop Insurance employment programme and the programme
Scheme throughout the country. Up till· for eradication of proverty will be imple..
now, there has been provision for life in- mented vigorously.
surance and general insurance but there has
been no provision for the insurance of The provision for self-employment
crops of 70 per cent of our people who schemes has been curtailed considerably in
depend on agriculture. The step taken by comparison with the provision made last
the Finance Minister to remove this disparity year. A provision of 25 crores of rupees
has definitely helped in safeguarding the was made for self-employment schemes in
interests of farmers. The financial loss 1984-85 which has now been doubled. but
suffered by our farmers due to Datural cala. the revised estimates of 1984-85 is RI. 149
mities has also been covered under the Crop crores. This programme of providing employ..
Insurance Scheme. ment to young men has proved very popu-
lar in the entire country. People are get.
The social Security Scheme will be intro- tinl employment, production is increasing
duced In 100 select~ district~. It will and new emt'lo¥~eQ,t opportunities are
 65 O'1IIIral Bud,'t, 1985-86-
G,neral Discullion and
CHAITRA 2, 19)7 (SA.KA)
/01'
Supplementary De'lnlllUls
Grants (General) 1984-85
6'
being created. ID view of this the amount respector Science and Technol0,y. It indi.
provided should be raised from 65 crores cates that our Government is committed to
to 149 or J50 crores of rupees. It be wm what our young Prime Minister, Shri, Rajiv
a commendable step for giving a new direc. Gandhi, bas said about takina the country
tiOD to our youth. into the 21st century and about adopting a
modern and scientific approach. This
So far as facilities given to the corpo- provision of Rs. 1068 crores made for atomic
rate sector are concerned,. MRTP limit has power, space, ocean development and electro-
been raised from Rs. 25 crores to Rs. 300 nics will definitely yield good results.
crores ; cost limit for machines and plants Similarly, the concessions given to the
in small scale industries has been increased electronics industry wiU prove helpfu] in
from Rs. 20 lakhs to Rs. 35 lakhs and in increasing production, generating employ-
ancillary industries it has been raised from ment opportunities and. providing better
Rs. 25 lakhs to 45 lakhs and some industries services to the common man. This is my
have been given exemption from the licens- belief.
iog system. It certainly shows that in our
economy more attention is being paid to So far as other concessjons given to the
small scale industries and to the develop- electronics industry are concerned, the
ment of employment opportunities. The Minister of Electronics, Science and Tech~
limit appears to have been increased keeping no logy bas made a statement two days ago
in view the price rise. As a result of these, in respect of the electronics policy wherein
the development of small scale industries be said that a target of producing electronic
would be expedited. goods worth about Rs. 10,000 crores by
1990 bas been fixed, If we want to give
You have also given considerable faci- such a high priority to the electronics indus.
lities to the private Sector which will defini- try, and we (eel that it will be very useful
tely speed up the pace of industrial develop- in our country because it wilJ generate
ment. The public sector undertakings, employment opportunities, it will strengthen
wherein about Rs. 35;000 crares have been our economy and it will modernise our
invested, are not getting even one per cent system, then 1 suggest that electronic com-
return. Just now, my colIeague Shri Tariq plexes should be developed in certain
Anwar said that they had earned an annual selected districts of each State and local
profit of Rs. 245 crores only in the last talents and young entrepreneurs should be
year. I would like to draw the attention of encouraged and they should be given train-
the Finance Minister to the fact that the ing (Interruptions). For imparting training to
administrative Ministries of all the public them. training institutes and electronic com-
uDdertakings are different. That is why plexes should be set uP. In every State,
proper monitoring of their performance can- electronic training institutes should be set
not be done. This causes loss to our ceo· up which may give information as to what
nomy and it becomes the responsibility of type of electronic equipment is requIred to
the Finance Minister to meet this Joss. The be produced, which technology should be
Government has to meet the loss suffered adopted and wherefrom that is to be acqui-
by any public sector undertaking. I would red, and bow integrated development can
like to suggest that the Ministry of Finance take place so that the people of the State
'should monitor the capacity' utilisation, pro- concerned may get tho correct technology.
With the hope and confidence that the Bud.
ductivity, profitabilit~ and cash.flow of
get presented by the Hon'hle Finance Minis-
public sector undertakings so that no under..
ter in this House will prove to be a produc-
taking may resort to under-utilisation of
tion oriented Budget and will take tbe
its capacity or incur any Joss. The deficit
country towards self.reliance and give a
or 3500 crotes of rupees shown in the
Dew direction to the country, I support the
Budget can be covered by public sector
Budget whole.heartedly and tbank you also.
undertakinas alone if th",y earn profit at the
rate or 10 percent.
SHRI RAJ KUMAR RAI (GHOSI):
Mr. Chairman, sir, 1 am thankful to you
Similarly, a prOVIsion of IOfj8 crores of
rupees has been made in tJ le Budget in for, giving me an opportunity to support
67 G••,al Budget, 1985..86- MARCH 23, 1985
0'''''01 Discussion and
[Shrl ltaj Kumar Rai]
the 1985.86 Badget presented by the
Hon9 ble Finance Minister. It is my good
fortune that I am supporting a Budget
presented by "" Shri Vishwa Nath Pratap
Singh, a person who is giving shape to the
dynamic steps announced by our leader,
Shri Rajiv Gandhi, and who is known in
the entire country as a dutiful and practical
person. This is quite a practical and bold
Budget. In this Budget, the Hou 'ble
Finance Minister has tried his best to give
relief to the farmers, the middle class and
the lower class people. I am confident
that in the coming days, these categories of
people will get sufficie'nt relief.
So far as the direct and indirect taxes
are concerned, the Hon'ble Finance Minister
has provided considerable relief in them
also. Thus, this Budget is for the welfare
of the people at large. In this Budget
industries too have been provided with
incentives and I am sure that it wiJl help in
strengthening the base of industrialisation
of the country in the times to come. More
facilities will be created by this Budget for
jobs to the unemployed, which is the dire
need of the hour. The manner on which
the Hon. Finance Minister has touched the
entire economic set up of the country
through this Budget will go a long way in
helping all sections of the society.
Besides, 1 would like to submit that two
or three more things should have been
provided for in the Budget. You know
that U.p. and particularly eastern U.P. is a
densely populated region. Per capita
. income is very low there, employment
opportunities are so scarce-industries are
almost non-existent-that the people of that
region have to live like paupers 10 other
parts of the country of the world. You
may go to Calcutta, Bombay or any other
part of the country. You will find that
there the rickshaw pullers are from eastern
U.p. We were expecting the Hon.
Finance Minister to introduce some special
scheme. for eastern U.P. The Dohrighat
Thermal Power Station in Azamgarh was
sanctioned some four or five years back and
although other projects sanctioned along..
with it have already been commissioned,
yet this project has not attracted the
Supple""niary Demand, /(1' 68
Grants (General) 1984-85
attention of the Hon. Finance Minister.
He has not made any special provision for
it. Thus, eastern U.p. has been neglected.
It is the policy of our socialist Govern-
ment that first of all the downtrodden are
to be uplifted. The Hon. Finance Minister,
when he was the Chief Minister of U.P.,
used to give priority to the case of the
poor. The condition of eastern U.P. is
the most pitiable today and he should have
paid attention to it in the first in'stance.
The Hon. Minister of State for Finance is
present here and I would request him to
pay special attention to the conditions
prevalent in eastern U.p.
Mr. Chairman, Sir, the Crop Insurance
Scheme and similar other schemes introduc-
ed by the Hon. Finance Minister in' this
Budget are commendable and he deserves
congratulations therefor.
Mr. Chairman, Sir, I want to draw the
attention of the hone Minister, through
you, to two or three points. It is true
that levying of taxes is very essential for
any developing country, but the common
man is groaning due to the burden of taxes
on beedis. kerosene~ cooking gas, 'vanas-
pati ghee, petrol, diesel oil and other
essential items and we all feel concerned
about his plighL I would request the
Hon. Finance Minister that if he wants to
do something for the poor and the
labourers, he should give some relief.
The Central Government has presented
a deficit budget to the tune of about
Rs. 3300 crores this year, which is less
than last Year's deficit. You know that 80
per cent of the people of this country live
in villages and they do not get any benefit
of the subsidy given on foodgrains. ,What-
ever the benefit , it accrues to the urban
people. Mr. Chairman, Sir, you have a
lpng experience. If you see you will find
that by granting a subsidy of Rs. 1,200
crores we have not been able to benefit
the r~ral people. Government give lakhs
of rupees for the implementation of
programmes like NRBP, RLEGP,
TRYSBM, etc. but the benefits of thoso
programmes do not reach the poor. I
would like to draw the attention of tho
Government to the fact that 'Food for
Work' was fhe Government's policy.
69 General But:lget, 1985-86- CHAITRA 2, 1907 (SAKA) Supplementary Dt1lllllllb 70
General Discussion and
Similarly, a scheme for landless labourers
had been introduced. If you get all these
programmes monitored, YOll will find that
all of them are being implemented through
contractors. The Government do not have
a record of these works. An already cons-
tructed road is again shown as constructed
OD the papers. Payment of five lakhs of
rupees is made instead of five thousand
rupees, and such payments are being made
without any fear. I would, therefore,
suggest that first of all, a record of all
works may be kept and, if it is not possible
to do so, then all these prOgrammes may
be suspended for some days and later on
they may be restarted only after the whole
picture becomes clear. Otherwise the
benefits of the funds that you are giving
will not reach the poor and all the funds
wIll be misused. When you want to
create a socialistic pattern of society, the
poor man also should get his due. I would
like the hone Finance Minister to ensure
that the poor man gets his due.
With tbese words. I once again congra.
tulate the Finance Minister and support
this Budget.
SHRI RAMESHWAR NEEKHRA
(Hoshangabad): Mr. Chairman~ Sir, at
the outset, I congratulate the Prime
Minister and the Finance Minister for pre-
senting the Budget for 1985-86 in this
House. In this Budget, efforts have been
made to provide relief to every section of
the society. Efforts have also been made
in it to indicate the way in which the
Seventh FiVe Year Plan would be imple-
mented. Besides, special attention has
been paid to ensure tbat inflation does not
increase. The opposition parties have
criticised the Budget. Somebody has
callod it a pro-capitalist budget and some
others have called it an anti.poor Budget,
but, Mr. Chairman, Sir, if you see the
record of the last 30 years, you will find
that whenever budgets have been presented,
the Opposition had always reacted in this
manner. A few days before the presenta.
tion of the Budget, some pressmen met me
and told mo that although the Budget was
still to be presented yet the opposition parties
had shown their reactions to the effect that
this would be an anti.poor and procapitalist
Bud&et.. When tho pressmen come to know
for Grants (General) 1984-8S
of such reactions even before the presenta-
tion of the budget, you can understand the
meaning of it. Such things do Dot have
any particular impact on our masses, who
have given a befitting reply to the opposition
parties in the last elections.
Members of the opposition parties may
call it a pro-capitalist Budget, but I
would like to tell them that previously in
the event of the death of a poor farmer or
a labourer working in the fields or an
. living in a smaJl village, like
artisan ' black...
smith, carpenter, etc., there was no one to
look after his famiJy, but in tbis Budget a
provision has been made to provide a sum
of Rs. 3,000 to such people. The Opposi-
tion should ponder over it whether this Bud.
get is pro-capitalist or pro-poor,
Our friend from Kashmir was speaking
just now. He said that the Crop Insurance
Scheme introduced for the farmers in the
Budget would benefit 80 percent farmers.
This will definitely provide relief to the
poor and support to the small farmers in
faeing natura) calamities. Similarly, our
hon. Finance Minister has given relief to
the industrial labourers and the middle class
people. Licence fee on T.V. and radio bas
been abolished. Wealth tax limit has been
enhanced which has provided considerable
relief to the middle class people. The aboli.
tion of Estate Duty has also provided relief,
The cost of houses is increasing with the
time. The prices of land arc also increasing,
with the reSUlt, that tbe common man had
to bear the burden of paying Estate Duty,
but the hone Finance Minister bas liven
him relief by abolishing this Duty.
The hon. Finance Minister has dispensed
with the licensing system in respect of many
industries so that mOre industries could be
set up and their production also increased.
For this purpose, he has relaxed many rules.
This will create a better climate for indus-
trialisation and increase employment oppor-
tunities. This way, tbe hOD. Finance
Minister has made efforts to do justice unto
every section of tbe soclely. He bas tried
to understand the problems or the counuy
deeply and, particularly, keepinl in view
the difficulties beiDa faced by the middle
class people, he bas enhanced tbe Income
tax exemption limit from Rs. 15,000 to
Ra. 18,000. He deserves coosratuJatioDa
71 O."eral Bud"t, 1985..86- MARCH 2.3. 1985
General Dl3cu.iofl arad
[$hrl Ramuhwar N eekhra]
for thil. With this announcement, more
tban 10 lakh people will be spared from
filing income-tax returns.
It will, on the one band, give relief to
101akh people and on tbe otber, the Income
Tax Department will be saved from the
botheration of maintaining tbe records of
10 tub aasossees and now tbey will be able
to devote their time to detecting tax-evasion
in other cases. But this relief is still not
sufficient. My submission is that this exem-
ptiOD limit may be enbanced to Ra. 2S,OOO
10 that more people may get relief.
Tho housewives who had calt their votes
in larae numbers to eJect this GOvernment
bave been somewhat disappointed at 'his
Budget. This kitchen expenses have increased
veey much as a result of the increase in the
prices of cooking las, soaps, vanupati abee,
kerosene, etc., causing a heavy burden on
them.
14.29 hn.
[SHRIMATI BASAVA RAJBSWARI
in the Chair]
. I bope tbe hon: Finance Minister will
definitely do somethmg to reduce this
burden.
Sir, I would like to submit, through you,
that the poor people living in the far.flung
villages will be severely hit by the increase
in the levy on kerosene oil. They used to
light a lantern for an bour or two wi th
kerosene oil, but now they will have to face
great difficulty, because electricity has not
reached every village in our country so far.
So, the increase effected in the price of
kerosene oU should be withdrawn.
The increase in the levy on petroleum
products wIll, of course, yield some revenue
to the Government but it will cast heavy
burden on the poor. There are many trans-
port corporations which operate buses and
there are other bus .. owners and taxi.owners
also who arc IDcreasing their fares. The
increase in tbe Railway fares and the bus
fares will cast a heavy burden on the poor.
So, yOU should reconsider it.
Tax on bidis has also been increased
This increaso iD mar,inal. It is hardly on~
SupplelfWntary Demands /or 72
Grant8 (Ge1leral) 1984-85
paisa per bundle of bidis. Although only
one paisa has been increased on a bundle
of 25 bidis, yet the bidi manufacturers have
effected an increase of IS paise since the
day before Yesterday, with the result that
the poor man who used to smoke bidis on
the occasion of marriage or in an hour of
sorrow and thus lighten his burden, IS now
worried over the fact that Government have
increased their burden.
The increase in tax on paper will bit
hard the students and others. I will urge
UPOD the Finance Minister not to increase
taxes on sman items in this way. because
they affect the poor directly. It should be
withdrawn so that the good image formed
in the country about the Government that
they are determined to eradicate poverty
and that they will work in the interest of
the poor, is maintained. So, this should be
withdrawn.
The Finance Minister deserves congra.
tulations for giving more incentives' to small
scale industries. Government want those
poor persons to come forward who want to
set up industries. They have received educa-
tion by taking stipends from the Government
and have passed engineering and tcchnical
examinations. Government grant 75 pcr
cent of the amount required for the setting
up of industries and the remaining 25 percent
amount has to be invested by the new
entrepreneurs. How can a poor man who
bas studied by taking stipend from the
Government arrange sucb a big amount for
the settlllg UP of an industry? So, I will
urge upon the han. Finance Minister to
provide this amount also to him.
Our HOD. Prime Minister and the
Finance Minister have said that black money
will be eliminated, but no concrete proposal
has been made in the Budget to that effect.
I would urge upon the hOD. Minister to
endeavour to eliminate black money by
bringing forward same concrete proposal.
For self.employment scheme, tbere was
a provision of 149 crores of rupees in
] 984-85, but only 6S crores of rupees have
been prOvided for this in the Budget for
1985-86. Our late Prime Minister Shrimati
Indira Gandhi had initiated this programme
and this scheme became very popular. Thoso
youosmen who are Dot able to set
jobs,
13 GeMral Bud,et, 1985-86- CHAfrRA 2. 19()7 (SAKA) Suppl,mentQf, Demand, 74
General DiaCU3sion and
want to talco advantage of tho self·employ-
ment scheme but the funds provided for
this purpose arc so small that only very
fow Persons will be benefited by this scheme.
Moreover, the responsibility of implement-
ing tho self-employment scheme has been
entrusted to banks, The banks located in
Tehsils, towns or townships say that they
have received sanction for subsidy for 15
persons only and they can give loans to 15
persons only and not to all, Therefore, a
big question arises before the banks. They
can give loans to 15 persons against 200
applicants. Delaying tactics are, therefore,
adopted and opportunities for corruption
and favouritism are created. I would, there-
fore, submit that you should make maximum
allocation in the Budget for the self-cmploy.
mellt scheme and direct the banks that all
the persons applying for loans for self.
employment should be provided with loans.
I would submit that the youth of the country
are having high hopes of our Prime Minister
and they have accepted him as their leader.
Today, the unemployed youth is facing such
a situation that by the time he gets a degree
or receives technical education, he attains
the age of 24 years and the maximum age
limit for getting a Government job is 25
yearS. I wou1d request that this age limit be
increased so that an unemployed youth may
be able to enter a Government job.
I would also request that a scheme
should be fomu)atod to provide Government
jobs to the unemployed. Unless the Govern·
ment create new opportunities and formulate
new schemes for providing employment, the
number of unemployed will on increasing.
Government should. therefore, give them
unemployment aJlowance and create new
employment opportunities for them.
Government propose to issue lJcences for
2S industries and have given relief to certain
industries to march ahead towards indus-
trialisation. Government have brought down
the income tax slab a]so.. The on1y purpose
of these reHefs is to eradicate corruption,
but the biggest source of corruption is sales
tax. The consumers have to pay sales tax
but it does not reach the public exchequer.
That sales tax is swallowed collectively by
the officials and the traders. This spreads
corruption. I would request that without
for Grants (General) 1984-85
consulting the State Governments, the sales
tax should be abolished. This will be a big
relief for tho consumers and the country.
In our Constitution mixed economy has
been accepted and I congratulate the hone
Finance Minister for presenting the most
revolutionary Budget with that objective in
view.
SHRI C. JANGA REDDY (Hanam.
konda): Madam Chairmen, the han. Mem·
ber speaking before me said that after the
presentation of the Budget, the prices of
oils had increased and that tbe prices of
kerosene oil and vegetable oils should be
reduced. He further said that we should
work for the poor, but I want to tell him
that it is not a poor man's Budget; it is a
pro-rich Budget. While supporting this Bud-
get, he supported the Finance Minister.
The truth is that instead of expressing his
personal views, he said all these things to
please bis leader.
Tho Finance Minister presented tho
Budget, but he congratulated ShIt Rajiv
Gandhi. Had Shr; Rajiv Gandhi presented
the Budget, I would have appreciated his
praise for him. You should congratulate
the Finance Minister because it is he who
prepares the Budget. Shri Rajiv Gandhi
and the Finance Minister do not prepare
the Budget collectively.
You yourself say that the prices of kero.
sene oil, soaps, etc.• should be brought down
to provide relief to housewives. You also
say that the opposition leaders criticise the
Budget in the newspapers even before it is
presented. This is not correct,
Madam Chairman, I would only like to
submit that in this Budget it has been said
about farmers :
[English]
"We also had the benefit of two success-
ful crops."
[Translation]
It has been said in the Budlet : .
[English]
"More than 70 percent people are far-
mers or cultivators."
75 G,,,.rol Budget, 1985..86- MARCH 23, 1985
G'Mral Discussion and
[Shrl C. Janga Reddy]
[Tranl/ation1
Farmers have to raise their voice in
Parliament to demand remunerative prices
for their produce keepina in view their cost
of productioD. In Parliament" more than
70 precent Members belong to the cultivators
class. They get elected with the votes of the
poor, but they keep in view the interests of
the consumers and forget the farmers. If
a farmers is made the Finance Minister or
the Prime Minister, even he will forget tbe
interests of the farmers and think of himself
only. (/nte"uptlons) As to what should be
done to remedy this situation, that also I
wiII tell. Suggestions will also be given.
Madam Chairman, YOU have also spoken
about price commission. I support the view
express~d by you. The taxes on inputs used
by the farmers should be reduced. Excise
Duty on tractors and fertilisers should be
reduced. Shri Charan 'Singh, when he came
to power, had reduced the excise duty on
fertilisers and brought down its price from
Rs. 120 to 60, but when the late Smt. Indira
Gandhi came to power, she again increased
it to Rs. 120. The taxes on tractors, fertili.
sers and on the other inputs used by the
farmers should be reduced and these com-
modities should be made available at low
prices so that the cost of agricultural pro-
duction is brought down and the farmers
are not compelled to raise their voice in
Parliament and in the AssembJies to demand
remunerative prices for their produce. You
know that the Price Commission had fixed
the price of SUgarcane at Rs. 165, but the
Government reduced it to Rs. 140, because
they wanted to provide sugar to the consu-
mers of lower rates and asked the State
Governments to pay as much bonus as they
liked. Here in Parliament we demanded
that the sugar mills should be nationalised .
but instead they handed over 10 or 15 mills
back to the miJlowners. Therefore, the
industry Is not at aU at fault. Today,. the
farmen are sowing less sugarcane because
of itl low price and they are Dot getting a
remunerative price. (Int.rruptlons) During
the Janata regime. sugar was made available
at RI. 2 per kg. and it was made available
in abundance even in villages. (Int~,.ruptions)
Madam Chairman, kindly teU tbe Conaress
Mombon wbat havo bocn the achievements
Suppl,mentary Demands lor 76
Grants (G''''lIral) 1984-85
of the Janata Government. They are not
able to recall the lood deeds of the Janata
Government. Prof. Madhu Dandavate was
the Railway Minister at that time and the
Railway Budget presented ,him was not a
deficit Budget. We bad reduced tho Railway
fares, provided first class facilitities in the
second class compartments arid even then a
. deficit Budget was not presented, whereas
you are now enhancing the taxes and trans-
port charges and even then your Budlet is
going into deficit. It is because of the fact
that your way of functioning is different
and way of thinking is also different. Our
.Government had done a lot of things in
two years. you must be knowing it.
(Interruptions)
AN HON. MEMBER: Even then you
do not get votes.
SHRf C. JANGA REDDY: We want
to teU the Congress Members that various
factors play their part in obtaining votes,
such as wine ; evoking of sympathy, women,
through mutual distribution of bank money
etc. It is not that votes arc received merely
by doing service upto the people. We come
here to serve the people and not to make
our future votes secure. You have sot
votes and you are sitting. here, that does
not mean that People are happy with you.
You know what happened during the
Assembly elections held one month after
the Lok Sabha ejections (Interruptions).
[English]
MR. CHAIRMAN: Mr. Reddy. you
address the Chair. Why do you listed to
them?
[Translation}
SHRI C. JANGA REDDY: You anno.
unced the elections immediately after the
death of Smt. Indira Gandhi but you did
not act the lame number of votes in Assem-
bly elections as you got in the Lok Sabha
elections.
[English]
MR.. CHAIRMAN: We are not discuss.
ing the voting pattern, Mr. JaDla Reddy.
You speak OD tho Budaet. You will be IOSioa
your time DOW. •
77 GeMral Budget, 1985..86- CHAITRA 2, 1907 (SAKA) Supple~ntary Demands 78
General Discussion and
SHRI C. JANGA REDDY: What can
I do, Madam Chairman? I am being interrup-
ted.
PROF. MADHU DANDAVATE :
Madam Chairman, he is cDjoyin, ladies'
harassment. (/nterruptlolls)
MR. CHAIRMAN: Madam, no inter-
ruption please.
[Translation]
SHRI C. JANGA REDDY: Madam
Chairman, please protect me from these
ladies ... (Interruptions)
SHRIMATI VIDYAWATI CHATUR·
VEOI (Khajuraho): We never disturb any
Member. This is the reply to what you
laid earlier ... (Interruptions)
SHRI C. JANOA REDDY: Yesterday,
I had asked a question about the banks
which were funning in Joss, but my question
was not replied to.
[English]
It is not only one bank but almost all
the banks are bankrupt.
[Trans/ation]
Our Finance Minister, Shri Poojari,
arranges Loan Melas. I want to know how
many perso~s have been given loans so far.
More than 80 percent loans are given in
cities and about 20 percent are given in
_vi1lales. In ear1ier times, taking loans was
considered to be a sin but now it is conside-
red a respectable deed. For this purpose,
our Prime Minister comes and disburses
the loans. People are befooled and total
to get loans and not to repay them to banks;
in our Congress rule, loans are taken but
thoy are Dot repaid. Hotels are also being
given loans. To my knowledge, loans are
not belna recovered. We should excercise
control over the banks. the loans being
liven in the rural areas are being recovered
but in the case of urban areas, it is not ~o.
You will have to look into it.
Sales Tax should be abolished in the
States. Por helpfna the farmers, excise duty
on fertilisers should be scrapped. You have
introduced Crop Insurance Scheme. You
should cover cash crops like tobacco,
lor Grants (General) 1984-85
chillies, cotton and groundnut also under
this Scheme. Cotton is produced in a larlle
quantity in Andhra Pradesh. When the STC
wanted to have licence for export, that was
.refused. Jf I ask the Finance Minister he
will say that a licence for 10,000 bales 'has
been given to Andhra Pradesh. Earlier,
the farmers of Maharashtra and Gujarat had
been given licences. but Andhra farmers
have been deprived of it. Telugu Desam
M.P.s. had represented in this regard and
they were toJd that 10.000 bales would be
sent from Andhra. Apart from this, tobacco
is also produced in Andhra, by exporting
which a Jot of foreign exchange can be
earned, All the commercial crops should
be brought under insurance cover. We
have To)ugu-Ganga project and Kolavaram
and Pochampad projects also. A national
belt should be created for these irrigation
projects. In Andhra Pradesh, tobacco, paddy,
wheat, minerals and coal are found in
abundance. We need new collieries to
extract black gold available there. Consi-
derable power potential is availahle there.
So. a number of factories can be set up
there. There j s a shortage of funds witb
Andhra Pradesh Government and, therefore,
the amount of annual loans of 80 crores of
rupees being given for Singrauli colJieries
should be increased in order to provide
employment to more youth. The claim being
made by you regarding emp10yment throuah
N.R.B.P. has proved to be totally wrong.
Nothing is happening there except that the
already built roads are being shown as if
they have been built a new. The Members
from Uttar Pradesh, Maharashtra and
Karnatka are Complaining about it. (Interrup-
tions)
You do not attend Parliament. (Inttrrup ..
tlons)
Government should have a direct
control over RLEGP and NREP to ensure
proper utilisation of funds. M.B. Book
should be maintained for the purpose. Work
should not be given to the labour directly.
It would be better have a tender system for
that. The funds being given (or RLEOP ...
(Interruptiona) I request the Minister of
Plannina that RLBGP and NREP should be
amalgamated. For digging ponds and COOl..
tructing buildina, each 1abourer il heiDi
paid Rs. 9 per day. Ten labourers actually
work but on the pay roll, the signatures of
79 O,,,.,.al Budgl'. 1985-86- MAR.CH 23. 1985
Glneral Discuulon and
[Shri 'C. Janga Reddy]
twenty persons are obtained.Tbe entire
money is being pocketed by Government
Officers.
(lnt,rruptions)
Old roads are being shown as baving
been constructed under RLEGP and NREP.
Utter negligence is beina observed in this
reaard . The Members from U.P. and
lCarnataka are complaining about it. I
would, therefore, request you to improve
the method of planning for letting the entire
work completed. Separate funds should be
provided to undertake big projects. I am
thankful to you for bavina given me ample
time to speak, but I request you to protect
me from women when I am speaking.
(Interruptions)
[English]
BEGUM ABIDA AHMED (Bareitly) :
Madam Chair Person, while presenting the
General Budget for 1980-81. the then Finance
Minister expressed the Government's firm
resolve to repair the damage and to restore
the economy of the countrY to the path of
stability, progress and social justice. Under
the able, wise and strong leadership of the
late Prime Minister, Shrimati Indira Gandhi,
this has been achieved.
India is predominently an agricultural
country. This being so, it is essential that
the agricultural sector is in sound health. It
bas also been the experience of many deve-
loped nations that unless agricultural pro-
duction reaches a high level, industrial
progress is not possible at a rapid rate.
Agriculture and industry are the wheels on
which the Indian economy runs. If one or
the other performs hardly, the economy of
the country comes to a halt. Fortunately,
food production has reached record heights
and industrial production which had slum-
ped a little has recovered substantially
thouah the average growth rate of about
60/0 is still below the target for the Sixth
Plan period. The balance of payments
situation has also been healthy. Even the
higb rate of inflation has been effectiveJ_)'
contained and controlled. The economy 18
functioning well.
While governmental poliCY in the agri-
SuppletMntary Demands lor 80
Grants (Gsnera/) 1984-85
cultural sector continues on existing Jines,
two new sch'emes are noteworthy. The
scheme of crop insurance will indeed go a
long way in mitigating the disastrous effects
of drought or flood on the livelihood of
our farmers. The other scheme of social
security envisages a risk cover in case of
death by accident in respect of earning
members of poor families comprising land-
less labourers, smalJ and marginal farmers,
and traditional craftsmen. Indeed, I welcome
these measures. These twO schemes reflect
the Government's commitment to rural
development, agriculture and above all, to
social justice.
Agriculture is doing well. Industry needs
an impetus. It is in this background that
the present Budget has been presented and
it is in this light that it should be viewed.
Investment in industry and industrial
production wi11 pick UP only if a healthy
cHmate is created. The hone Finance Minister
in his speech has expressed Government's
decisions designed to reduce rigidities and
improve the environment for industrial
growth. The proposed delicensing of certain
industries so as to cut procedural delays to
a minimum is one such decision.
At existing rates of taxation, the total
receipts in 1985-86 are estimated at Rs.
47,635 crores whereas total expenditure is
placed at Rs. 51,295 crores leaving us with
a budgetary gap of Rs. 3,660 crores. Surely,
the Finance Minister does not lack imagina-
tiOD.
The hOD. Finance Minister could very
well have plugged this deficit by ennanced
taxation all round. That would indeed have
put us all under a great burden. It would
have brought upon US gloom and despair.
We would have had a balanced budget all
right but at the cost of being consumed by
taxes.
Moreover, there is nothing sacrosanct
about a balaDCed budget. On the contrary,
economists have often suggested that in the
case of an under-developed nation where the
national income is growing at a rate of
about 6 % and the fate of inflation is
around 4 to S%, greater reliance can be
placed on budget deficit to finance Govern-
ment outlays as against taxation.
 81 a,.ral BudaI', 1985-86- CHAITRA 2, 1907 (SAKA.) Suppltmtnltll'} Demtllltb 82
General DUcIUS/on and
Viewed in this perspective,. the deficit of
Rs. 31 349 crores after. taking into account
budgetary proposals need not cause much
alarm. In fact, the Budget as presented is
designed to give an impetus to industrial
growth and consequently to national income.
No doubt there wiJI be a mild pressure on
prices but this should be more than counter ..
balanced by an increase in the supply posi.
tion caused by the Budget and other 00-
vornmental policies.
Our dynamic Prime Minister, ~hri R.ajiv
Gandhi has, on a number of occasions
expressed the Government's determination
to wipe Out black money. and lowering the
rates of personal income taxation is a step
in this direction. It has been realised that
the prevalence of high tax rates is the fitst
and foremost reason for the spread of taxa-
tion and build-up of black money. Evasion
is resorted to when the benefit of evasion is
greater than the cost. As tax rates are
raised, the benefits from evasion also
increase and make evasion all the more
attractive. As a consequence, high tax rates
need not necessarily 1ead to greater tax
revenue and in practice have often led to a
lower tax collection. The hon. Finance
Minister needs to be congratulated on his
proposal to bring down the maximum rate
of income tax to 50% and for abolishing
the surcharge on personal incomes. Indeed
it is a reflection of the Government's prag-
matic and realistic approach to economic
problems.
15.00 IIr•.
. {MR. DEPUTY SPEAKER in the Chair]
This reduction in rates of personal
income tax and the raisina of the exemption
limit from Rs. 15,000/· to Rs. 18,000/-,
,coupled with the abolition of the scheme of
'Compulsory Deposit, have already produced
waves of relief amongst the' tax"payers,
rhousht it would have been botter if Interest
and instalment payment on CDS had not
been deferred by one yoar.
Coming to wealth tax. est,ate duty ~d
gift tax, wealth tax ,rat... ha.ve als9 ~
reduced, esUue duty is piopo~ ,to be
abQUahed and aift tax haS ~ 10ft O1Uouch-
cd. These three taxes we'" introduced iD&O
tbe Indian tax Itructurc it J tb. Fifties With
for Grants -(G••ral) 1984-8j
~ho hope that they would entail an incct:ase
ID the tax revenue and a reduction in the
~ooqual distribution of wealth. Theso obj~ ..
tl~es have not been realised. Wealth tax
accounts for only 0,4 per cent of the total
tax revenue whereas gift tax and estate duty
yield only 0.04 per cent and 0.09 per cent,
respectively. Together, the three taxes
account for only 0.53 per cent of the total
tax revenue. These taxes have been unable
to bring about any measure of egalitarianism
in so far as distribution of wealth is con-
cerned. The hon. Finance Minisfer in his
speech has recognised this in the case of
estate duty and, therefore. proposes to
abolish the same. But the same is true of
the other two taxes also and more SOt of
gift tax.
Another argument in favour of abolition
of aift tax is that lift tax and estate duty
ao together. Without gift tax, estate duty
would be meaningless as death-bed gjft~'i
would quite easily avoid the liability of
estate duty. It is to plug this lacuna in
estate duty that gift tax finds itself in the
Statute Book. When estate duty is to be
abOlished, why not aboliSh the gift tax
abo 7 In this connection~ I would like to
quote what the hon. Finance Minister has
stated :
etA tax, however laudable in intent,
should have no place in the Statute
Book, if it has outlived its utility."
Another point to ponder over is that,
both estate duty and gift tax are taxes 00.
transfer of property. While estate duty con~
cern. itself wjth transfer after death, gift tax
is relatable to transfer during the life-time
of the property-holder. When transfers after
doath are being exempted, why not during
the Ure-time ?
Out of necessity, the Government has
bad to place greater reliance on indirect
taxation. Direct taxes have a very small
base in developin, countries and particu-
larJy in India. In an advanced economy.
with a high per capita income, the Govern-
ment i. able to derivo the major Part of itl
taX foveoue through direct taxation. Bua, on
the other haud, In a developing economy
~acted_ by Jow personal incomes and
preponderance of .mall producers and
,'trader.;, tilt c:olloctlon or ,mall amount. of
83 General Budget 1985-86-
General Discus.slon and
[Begum Ablda Ahmed]
direct tJix from a multitude or low-~ncom~ ..
carners presents insuperable difficuluCi. It IS
only through indirect taxation that revenues
can be raised to meet government expendi-
ture. This explains the fact that customs
duty and union excise duty account for 79
per cent of the total tax reVenue. The
Government has, throughout, devised an
indirect tax structure so as to ensure a
certain degree of progressiveness such that
items of mass consumption are taxed at
lower Tates compared to luxury items.
Through indirect taxation, particular commo·
dities ; and industries can be favoured. In
the present budilet, electronics and tbe
electronic industry have received a favour-
able treatment. Electronics is the industry of
our times and needs all the encouragement we
can give.
rhe small scale sector has made India
feel proud. The han. Finance Minister has
recognised this fact and has announced a
new and liberalised scheme of exemptions
for this sector.
There is some criticism from certain
quarters that the Budget as presented would
be highly inflationary. This is not true as
time will tell. No doubt, a greater reliance
on indirect taxes and deficit financing tends
to create pressures for the upward movement
of pricos, but the envisaged increase in the
output of industrial goods would more than
counter-balance this tendency. The budget
bas achieved what it was deSigned to achieve.
It bas created an environment conducive to
an acceleration in the rate of industrial
growth.
Hon. Members, a wonderfuJ opportunity the rural development. 1 regret tbat inspite
has come our way," Jet us seize it. Let us of all these efforts to improve rural life
ride the crest rather than be splashed under poverty has not been wiped out from our
it.
Thank you very much,
[Translation]
*KUMARI D.K. THARA DEVI (Chik-
mangalure): Mr. Deptuy Speaker, Sir, I
firmly believe that our hon. Finance Minister
bas sincerely tried to rectify the financial
position of our nation through this epOch
-----------------------,...,.,.-_._--
*Tbc speoch was originally deJivered in Kannada.
Supplementary Demands lor 84
Grants (GeMral) 1984.85
making budget. We have COme accOSt
several budgets after independence. Many
times due to some j"deological conflicts. We
were not able to see the reality and to
rectify tbe fiscal position of our country.
Then why reactions from all sections
of the society and also from outside and
inside the Parliament about this budget.
Some of them have said that the budget
would help the affluent and rich people.
Budget has certainly given several concessions
to the industries. But it would be wrong
to say tbat the budget hits the weaker sec-
tions. It has encouraged the production
and given relief to industries. On account
of this one cannot say that the budget is
helping the capitalists. Wealth of th~
nation has to be increased and then only it
would be possible to distribute it equaUy.
If this step is not taken to increase produc-
tion then we can distribute only poverty
among ourselves. The budget has laudable
object ives such as increase in the produc-
tion, improvement in the efficiency etc. It
is result oriented. Therefore, I say that it
is an unique budget and I welcome it whole-
heartedly.
Sir, I represent rural area and therefore
I would like to highlight the conditions
prevailing in the villages. In this novel
budget an amount of Rs. 932 crores has
been earmarked for rural development. An
amount or Rs. 790 crores has been alloca-
ted to agricultUre and cooperative sector.
For the last thirty six years we have achieved
some progress in rural planning. We are
stopping into the 7th Plan after completing
six five year plans. The Government has
tried its best during these plan periods for
society. Many traditional rural industries
have been neglected in the name of moderni-
sation. A situation bas come where
mechanisation in industry is destroying cott-
age industry. Life "In viUaps cannot imProve
if this attitude continues. Unemployment
is on the increase. There are about 45
million person., in our country who are
unemployed. VVe produce only IS3 million
tonnes or foodgra ins even tbough we have
165 million hecrtares of cultivable land.
.-~ -----".-, -"~..
85 General Budget. 1985-86- CHAITRA 2, 1907 (SAKA)
Gen.e,.al Discussion and
AboUI 80% of the population lives in villa-
ges. Therefore. it is very essential to give
top priority to agriculture and cottage
industries. ..We have to encourage irrigation
programme if we have to solve the unemploy-
ment probJem in rural areas. Similarly
priority shouJd be given to generate more
power and to supply it to the rUfal areas.
If tbis is not done, rural life cannot improve
inspite of our five year plans. Instead of
spending large amount on major Irrigations
which will take ten to fifteen years for
completion I suggest tbat minor irrigations
should be given top priority. Therefore
investment in the small sector and irrigation
projects should be given priority. Then
only we can expect bumper production.
Therefore I urge the Minister to give maxi-
mum encouragement to small and cottage
industry.
On tbe' public sector crores of rupees
are being spent but the expected efficiency
has not been achieved in this sector. I
welcome the governments efforts to improve
efficiency in public sector during tbe 7th
Plan period. I urge that steps should be
taken to achieve the expected standards of
efficiency. To ensure efficiency in the public
sector thero should be neither any political
intervention nor frequent transfers. Res-
ponsibility should be assigned on each public
sector otherwise there would be buge finan-
cial losses and ultimately the rural mas5es
have to suffer. It is a matter of sbame that
so far we have not succeeded in stamping
out poverty from the country insp.ito of
various discussions in the Assembhes and
in the Parliament. We bave to take the
whole responsibility for it. Therefore I
would like to suggest that srtingent measures
have to be taken if the public sector does
not work according to tbe responsibility
assilDed to it.
Similarly power projects are also n~t
functioning upto the expected level of effiCI-
ency. This becomes very clear wben we
look into the Economic Survey. Therefore
I urae that steps may be taken to see that
power projects work properly.
Por the first time in history a new Minis-
try has been created for the welfare of
women. Education rOt girls upto higher
• The speech was originalJy delivored in Tcluau.
Supplementary Demands 86
lor Grants (Genera/)1984.85
secondary level has been made free. Several
other welfare schemes are there in this
budget, for the emancipation of WOmen.
Therefore on bebalf of the women of our
country I congratulate our young and dyna.
mic Prime Minister Shri Rajiv Gandhi.
Since women constitute 50% of the popula-
tion of our nation jobs should be provided
to them accordingly. I would like to stress
that the nation cannot progress in the
absence or proper programmes for women.
Farmers' agitation is gOing on in several
parts of the country. Farmers are dissatis-
fied. This agitation may gain strength and
it may lead to all kinds of disturbances.
The farmers are demanding the Govern-
ment to give the same importance to agri-
culture as they pay to industries. Industries
get all facilities like water, electricity etc.
year after year. But the poor farmers are
nOt provided with any concessions in water
electricity charges. The farmers are so
poor tbat they cannot repay the loans to the
banks. Loans are passed on to nC'"t genera-
tion. Hence farmers need aU possible help
from the Government.
Our late Shrimati- Indira Gandhi was
the Prime Minister of our country for 16
years. She has done yeoman service not
only to this nation but to tbe whole world.
Sbe brought political stability in our coun-
try. She was mainly responsible for our
progress in the fields of science, atomic
energy, space, evironment etc. The whOle
world is aware of the magnanimous con·
tribution of Shrimati Indira Gandhi towards
world peace and to the non-aligned move-
ment. The coming generations should be
enabled to know about the valuable contri-
butions of our beloved leader. Therefore
I demand that the Government should
establish study centres in all tbe Universities
of our country 'in the name of Smt. Gandhi.
The centres should enable the students to
take uP these for their doctorate degrees on
Smt. Gandhi's farsightedness and rich con-
tribution to the nadon.
With these words, I tbank you and con-
clude my speech.
.·SHRI C. SAMBU (Bapatta): Mr.
Deputy Speaker, Sir, I would like to speak
in TelulU .
 87 General BMd,et. 198$..86- MAllcH 23, 198$
General DI8cIl8IioIl and
[Shri C. Sambu],
The ,budaet propolOd by the hon. Pin-
. _nee Minister for this year is anti poor and
pro-ricb. It appears that it hal beeD
specifically designed for tbe rlcb people of
this country. The party has foraotten the
interest of those millions of people who
have voted it to power. Furtber, this bud.
let decreases the revenue of the States but
increases the revenue of tbe Central Govern-
1llCDt. This is neither in the ,interest of
States nor in tbe interest of the Centre. For
weak States means a weak Centre. Tho
Centre can be strong only when tbe States
arc strona. The retardation In the pro-
BrOSS of States is nothina but the retardation
In tbe progress of tbe nation. The budlot
does not speak of the plethora of promises
that Congress party bad made dUrinl tbe
recently concluded elections. Por all these
reasons, Sir, on behalf of my party. TclulU
Dosam, I oppose this budget.
Sir, ours is a country wbere majority or
the people like agricultural workers. weavers
and others wbo pursue various other occu-
pation live. All these persons arc livinl
below poverty lioc. But unfortunately this
budget bas ignored them all. This budlot
was not made keeping tbe farmers especially
small farmers in view. There il not even
a sinllc proposal in this budaot which
benefits the farmers. No concession i.
,iven to them. No steps have boon
taken to offer remunerative pricca to the
(armers. At present farmers are Dot aeUiDa
the remunerative prices lor their produce
wbether it be a cereal or a commercial crop
like tobacco, around nut etc. Tho coat or
inputs, and .their labour and the risk they
undertake are not being taken into considera..
tion while fixing tbo lupport price for their
produce. The Centre is not cariDI to COD-
suIt the State Governments while fixioa tbe
support pricos. So the prices are beina
fixed unilatorally wbich are rwnins tho
tarmen of this country. Tbis policy mUit
change. The States sbould be liVeD suffi-
cient powers to fix the support prices for
aaricultural commodities since the Stat.
wUl be in a better position to 181110 tbe
conditions existing in tbeir areas. Tb1s will
belp 'not only tbe farmers but al.o Che
States.
SpeakJDI about the tax- imposed ID
$.,Iemelltary LHmtmdr 88
lor Grantl (G.".ral) 1984.85
this bud. ., it i. atranlt' , that even items
like Pan Masala arc allo Dot spared. Pan.
Masala baa become tax masala. Sir. only
the af'fJuont use thil pan masala. But in
Southern States like Andbra, Tamilnadu
and Karoataka, it is Dot popular~ Instead,
tbey use ICOoted betel nut powder. Scented
betel Dut poWder is very much popular in
ODe part of the country not only amoD, the
rich but even among tbe poor. The pre~
paration of betel nut powder is being carried
in a big way as a cottage industry. Thou-
aands of' persons depend OD thi, industry
for their livelihood. '
(/nte"uptlons)
[English]
MR. DEPUTY-SPEAKER: You cannot
exhibit anything in the House. You J,lave to
take permission.
(Interruptions)
[Tralll/atlon]
SHRI C. SAMBU: So it is most unfor-
tunate that tbe proposed tax on pan masafa
i, beiDg extended to the scented betel nut
powder, hilting thousands of poor people
wbo are enaaled in this cottage industry
very badly. It Is injustice. There may be
some justification for imposing tax on pan
ma.ala as it is consumed by the affluent
but there il absolutely no justification for
extending this tax to scented betel nut
,powder. Hence I request tbe bon. Minister
throqb this august House not to extend the
proposed tax on pan masala to scented
betol nut powder. I hope the hon. Minister
will aaree to this sU88estion and thus wUI
not deprive thousands of poor people in the
Southern region of tbeir lifclihood.
Once alain fishermen and thousands of
others who are involved in fish ina indua-
try has beeD ignored.. Especially so in the
case of fisbermen living in coastal Andhra.
Tbeir problems are many. They are a
nealtcted lot. They are Jiving in a dark
world now. So far DO Government have
shown any interest in solving their problems.
You bave Dot done any justice to tbese
8sbermea. I come from the coastal area
of Andbra and know their problems. These
8sher.men bave DO facilities. They do DOt
have Transport facilities. They do DOt have
bOlpitals. They have no educational iDS-
89 C••ral budget, 1985-86- CflAITRA 2, 1907 (SAKA) Supplementary Detnallih 90
General DisclUlion and
titutloos for tbeir childrcn. They do not
have roads as welL Hence I rcquest tbis
Government, through you Sir, to come
forward and pull thom out of the their
miserable pUgbt. In this connection, I also
request to take up the constructional of
Ichbapuram·Thada road.
Handicrafts have been totally neglected
in this budget. It too needs ,some sustenance
from tbe Government.
Sir, women constitute 500/ 0 of the popu-
lation in the country. But for tbe women,
the Congress party would not have been in
power today. Yet this Government have
very conveniently forgotten tbe interests of
women. This Government chose to increase
the coat of all.the cosmetic including hair
oil used by women. Very sad state of
affairs indeed. When Telugu Desam party is
trying at the State level to elevate them to
the level of men by providing a share in
property on par with the men here, at the
Centre, the Government is trying to tax
even the cosmetics used by them. It is most
unfortunate.
I take this opportunity to request the
Union Government to abolish tbe contract
labour system.. Instead the Government
should make all efforts to encourage self-
employment schemes.
Sir, ours is a developing country. Majo-
rity of our people Jive below poverty line.
Hence there is every reason to implement
programmes which are beneficial to the poor.
In our State, the Telugu Desam Government
is implementing successfullY the schemes like
mid-day meals to the children, providing
rice at a subsidised rate of Rs. 2 per Kg.
and distributing clothes at cheaper fatos
through fair price shops. Why don't you
implement such schemes throupout the
country for tho benefit of the poor? I
request the Centre througb this august
House to take inspiration from tbe perfor-
manee ot Telugu Desam Government and
implement the same at the national level.
Food, cloth and shelter are tbe basic needs
and the Government should do all to
eDlure the same to tho poorest of the poor.
Sir I come from a coastal area of
And~. Nizam Patnam, Chit.la and Motu-
palIi can Very easily be converted into minor
for Grants (GeMl'al) 1984.85
ports. Thoulh a survey was conducted for
this purpose, so far no action has been
taken t~ convert them into minor ports.
Once again I am bringing this fact to the
notice of the Government and request to
initiate steps to develop Nizampatnam,
Chirala, Motupally as minor ports., If these
places are developed into minor ports we
can export fish, Jute, cotton, tobacco and
around nut to other countries through these
ports and earn valuable foreign exchange.
I come from Chirala. It is a coastal
area. Lakbs of people die every year due (0
cyclones. There are no cy(!lone shelters in
tbis area. I appeal to tbe Government to
construct cyclone shelters to protect them
from cyclones. During cyclones, the affected
people must be given timely belp.
Sir, in and around Cbirala there are
many weavers who weave qqality jacquard.
This item can find a foreign market readily.
So I request the Government to export this
item. It will improve the living conditions of
the handloom weavers there.
Before concluding my speecb, I appeal
to the Government to reconsider their deci-
sion to tax items like kerosene, pan rnasala
and scented betel nut powder. I hope the
han. Minister would withdraw imposition
of tax on these vital items and save the
poor people. I thank you very much for
giving me this opportunity.
[English]
MR. DBPUTY SPEAKER: Shri Mukul
Wasnik, please try to finish it in five or six
nlinutes. The Minister would like to make a
statement at 3.30 p.m.
SHRI MUKUL WASNIK (Buldhana~:
First of aU, I thank you very much (or
living me this opportunity to speak on this
budget. First, I would like to recollect a
statement made by our Late Prime Minister,
Shrimati Indiraji. Shri said, and I quote-
"I believe in acceptinl difficulties
as a cbaJlengc. Only that nation which
accepts challenges can grow in strenath.
No nation has Fown to greatness with..
. out lacina hardships with courage."
With these words of wisdom of our late
Prime Minister I now rile to support the
~, {Jeneral Budget, /985.86- MARCH 23, 1985
G~MrQI Discussion and
[Shrl Mukul Wasnik I
budget submitted by our hOD. Finance
Minister, Shri Viswanath Pratap Singh.
It is a good sign that this budget is
welcomed by many. I also accept that there
will be some difficulties and there may be
some challenges. But theso difficulties and
challenges, we have to face with courage
determination. Unless and until we face
these difficulties and challenges with .courage,
we cannot 80 towards our aim, we cannot
go towards the target for which we are
yearning, for which we are hoping and for
which we are aspiring.
Sbri V.P. Singh, in his budget, bas
made certajn provisions thereby trying to
remove tbe ills which bad been plauging
our society since so many years last. He has
put a side many of tho provisions in the
statutes which were creating many problems
in the society and thus tried to create a
good fiscal policy for the growth and deve.
lopment of our nation. ~rtain measures
taken by the Finance Minister like reducing
the personal tax at all levels to the maximum
"Of SO per cent and also tbe abolition of the
estate duty, and restructuring of tbe wealth
tax, etc. may give relief. to the affluent but
that does not make the whole exercise pro-
rich, since the aim is to make tax structure
self.generating and free from the disease of
black money.
As is the experience in many of the
countries of the world. we can draw inspira.
tion and hope that the results achieved
elsewhere will also not be difficult for us to
pin.
The concessions given to the corporate
sector apart (rom meeting the menace of
black money, will also certainly open new
vistas which will, no doubt, be Sainful to
tho country.
The biggest problem of our times, I
personally tbink, is the unemployment pro-
blerD. It bas spread throu.hout the Jength
and breadth of our country. The problein is
aisantic aa the total re,istercd unemployed
are about 24 million. II is our task, it is
our duty to meet this unemployment pro-
blem and I request the hon. Finance Minister
that the unemployment which is increaling
Suppiementary Demands lor 9~
Grants (General) 1984-85
at a rate of 1.3 Jak.hs per month must be
tackled. The employment opportunities will
have to grow. To achieve this the base or
the indu.tries whether public, private or
corporate sector must be widened.
In order to widen the employment
opportunities; also rural and cottase indus-
tries will have to proliferate. May I hope
that this budget will lay a foundatio~ stone
for the structure of gainful employment and
towards reduction of unemployment ? The
only caution which we must keep in mind
is tbat the budget may not give a rise to
inflation. With the upward revision of the
railway tariff as weJJ as some of the propo-
sals made by tbe Finance Minister. Such as
the increase in the price of the petroleum
products is showing an .effect on several
consumer items, making them dearer day
\1y day. If this trend is not checked. we may
have difficulties in realising our cherished
dream of giving better and easier life to the
poor. The needs of the poor are not as
many as that of the rich. They do not
aspire for luxury things ; they do not want
comfort; they only want the basic necessi·
ties like bouses, food, cloth, communication
and transport facilities. Therefore, I will
suggest that these things must be kept in
mind so that the poor may 'get these things
at a choaper rate.
EducatioD, which is one of the most
important things. which develops the overall
personality of a person, must also be made
available to the people at a cheaper rate.
The budget proposals as proposed by the
Finance Minister, I think, are not substan-
tial to meet what we dream today. Education
must be looked as one of the most impor-
tant things. May I hope that the increase in
the levy of cement wfll not increase the
construction cost of the houses for the poor?
This must also be kept in mind because
it is also very jmportaDt~ as far as we look
towards the poor. Let me add in a hurry
tbat the proposal with regard to an announ-
cement to give free education to the girls
up to the higher secondary level is also very
appreciable and I welcome such proposals
at this timo. This policy as announced it
has been in practice in many of the States.
But, nevertheless, it is very important, as far
as education for tho airls is concerned. A~
we look behind. we have .een that education
il arowioa day by day. yoar by 'year. Due
 93 General Budget. 1985-86- CHAITRA 2, 1907 (SAKA.) Supp/e~ntary Demands 94
General Discllssion and
tbe education bas shown some d iscrimina.
tion between the girls and the boys. Boys are
getting education, but the girls find it
difficult to get it. But the proposed policy
to give free education to the Girls up to
the higber secondary standard will encourage
girls to go jn for education.
It is said that this is a rich man's
budget. Many of the opposition members
say this. We do not want to quarrel with
those people because, sitting in the opposi-
tion they have to say something ; they
cannot say in favour of the budget; they
will have to oppose it. Therefore, we do not
see any point in criticising them or having
any quarrel with those people.
May I ask as to who will benefit from
the increase in the exemption limit for
retrenchment compensation rrom- Rs. 20,000
to Rs. 50,000 ? Who will benefit from the
increase in the base for calculating bonus
payment from Rs. 750 to Rs. 16oo? Who
are the other people who will benefit from
the tax-free loan Or loan given at a conce-
ssiona) rate for the housing need ? Who are
they who will benefit from the provision
that the salaried employees will no longer be
denied of the standard deduction of 25 per
cent on their salary merely because trans-
port faciHties were made avaiJable to them
by the employers? Will not the poor in the
length and breadth or the country benefit
from the concession given in 'f. V.as well as
radio ? Who will be the people who will
benefit from Rs. 3000 which wiU be given
from the social security scheme ? Who are
the gainers from the crop insurance scheme
proposed in the Budget? Has not the
Finance Minister taken care of the Scheduled
Castes and Scbeduled Tribes by pr~viding
funds for implementing the Special Com-
ponent Plan ? Is it not a Budget, oITel'ng
benefits to the poor by making ~ubsta al
provisions for implementing the 20-Point
Programme? There are many such schemes
which surely are for the welfare of the poor
ror the society and for the nation at large.
But I would like to say here that however
lood tbe Plan may be, its work depends on
those who implement it. Therefore. one
thing must be kept in mind, that the
administration through which we are to
implement this Plan must be made in iuch
a manner that it can really bring these pro..
for Grants (Genara/) 1984.85
grammes to the maSles for whom we
propose them.
"At the end I would only like to repeat
certain words of our late Prime Minister
who said that ·'Nothing worthwhile is
achieved without effort and bard work. It
has been said the builders of joy are the
children of sorrow." But this budget,
certainly. is that sense may not be a builder
of joy but we are here to strive to achieve
tbe dream of our beloved late Prime
Minister, and make successful the attempts.
With these words, I once again support the
Budget which our Finance Minister has
proposed.
THE MINISTER OF ST ATE IN THE
MINISTRY OF FINANCE (SHRI JANAR-
DHANA POOJARY) : Sir, with rapt atten-
tion I have been hearing hon. Members
from this side and from the Oppostion side.
making contributions--valuable contribu-
tions-to the Budget discussion.
Every year, when the Budget of the
Government of India is presented, there is
criticism, and there are also laurels and
praises for the Budget. We ha ve been hear-
ing constructive suggestions and also cons-
tructive criticism from the opposition alao.
and sometimes opposition without any basis.
This time. if you kindly look at tbe obser-
vations that have been made by the Press,
by the industry, by the trade and by the
peopJe, we can say that here is a Budget
presented by a sincere, sobre. straight..for-
ward, honest and brilliant Finance Minister
of the Government of India. He has pre-
sented a Budget which is a balanced Budget.
I know that tbere are critics who arc
sitting on the other side and we have been
bearing them. We know that also. lbey
profess themselves to be committed to a
particular philosophy and a particular
commitment to a particular ideology.
They say that we have been giving
up the policy of self-reliance, they bave
been saying that we are running away from
socialism, tbey have been saying that we
have become anti-poor. anti.labour and that
we have been giving step motherly treatment
to the States. Tbest- are some 01 the obser-
vations that have been made arter the Pre>-
sentation of tbe Budget, outside Parliament,
and also inside Parliament. Here is a Finance
Minister of tho Government of Iodi. who
95 G•• rat Budget, 1985...86- MAR.CH 23, 1985 Supplementary Demantls lor 96
Ge"eral Discussion aIUI Grants (General) 1984-85

[Shri Janardhana PODja rl] reliance ? What is the domestic investment ?

It is 25 per cent of G.D.P. What is the
bas to satisfy all sections of society. He bas domestic rate of saving? It is 23 per oent.
to latisfy the State Governments, the trade So, the dependence upon foreian capital is
and industry, the common man, far.era, only 2 per cent. Ir we' take a hYPOthetical
labour and ·his colleagues in tbe Council of position tbat tomorrow some multinational
Ministers as they also come forward with companies are going to. withdraw assistance
demands. The question is whether with tbe or capital from this country, what will
limited resources available, tbe Finance happen? Nothing will happen to the Indian
Minister is able to satisfy all sections of economy or to the country. It is said that
society and whether be has been able to
some small countries are going ahead of uS t
meet reasonably the bona fide requirements but what is the position there? If the foreign
of all sections of society. I may 10 a step companies withdraw their assistance from
further and say that there Is a Finance Mini..
those countries, their economy will fall like
ster, who bas sincerely made attempts to
a house of carda. But here can we say that
improve the functioning of the economy of
selr-reliance is a slogan? Self-reliance can-
this country. This Budget is not only the
not be a slogan. Self-reliance should be
Statement of Receipt and Expenditure, but
attained not by writing on a wall, it should
it Is a Budget to improve the functioning
be attained by performance. The Govern-
of tbe economy. Improvement of the eco- ment of India has been performing well for
nomy lies in the fact that it must create
the Jast so many years. I fully agree with
jobs. Unless the economy picks uP, there
the hon. Members who stated that our
cannot be jobs. Unless jobs are created,
economy was dOing well and that the Per-
unemployment problem cannot be solved.
formance of our economy was very good,
With this background, let us proceed. I do
not want to go into details as to what are , It has been said that we are running
the benefits that have been derived by the away from the public sector and we are
we akers lections and also the trade and encouraging the private sector. How many
industry. It has been discussed in detail botb public sector co m panics were there at the
on the floor of Parliament and outside beginning of the First Five-Year Plan ? Only
also. five public undertakings were there with
an investment of Rs. 29 crores. Today Rs.
To take UP the first point i.e. whether 35,400 crores are invested in the public
we have given up the policy of self·reIiance, sector undertakings. Can anybody say that
bere it bas been stated that we depend we are running away from the public sector?
more on foreign assistance and foreign Some people say that we are anti-labour,
borrowings. We have got the Sixth Five some say we are not for the labour. We
Year PlaD. We have seen that there was a bave heard that on tbe Floor of this House
massive outlay of Rs. 97,500 crores. In the during the last so many hours. If you go
first four years., there was an expenditure througb the speech of the FInance Minister
of morc than Rs. 80,000 crores. For the and if you go through the Budget, YOU will
fifth year the allocation was Rs. 2S,OOO crores find that so many incentives have been
but actuaUy the expenditure would be to the liven to the labour. I need Dot repeat them.

t 10.000
Y.
tune of Rs. 30,000 crores. So, the massive But stilI it is said that we are anti-labour.
outlay of the Sixth Plan would go upto Rs. may kindly note that when tbe distin ...
crotes. N ow, what is the share of guiShed hone Member from the opposite
1internal resources and how much Is the side Shri Indrajit Gupta made- his point, ho
dependence on foreign borrowings and assi.... . conceded that he had discussions with tbe
tanCe ? The House will be 8lad to know labour and with the Finance Minister and
tbat tbe dependence on foreign assistance, it was represented to the Finance Minister
whether it is bilateral or multi-lateral or that the Compulsory Deposit Scbeme shOuld
coming from IMF and other sources, is to he withdrawn. It has been done. I do not
the tune of 7 to 8 per cent only. 93 per say In det,n but be mentioned three points
cent bas come from internal rCloul'CCs. Is it wbich he mafje and whicb have been consi-
a mean achievement ? Can we say that our dered. Then are we antl ...labour? If you say
country bas not proar.sed? Can \'ie lay we are anti-labour, you take tho period
tbat w. bav. liVeD up lb. policy or Mlr.. between 1972..84, tb. tOD ;Y"n P.rirl ~r
<'!'~~Itp "
 97 General Budget. 1985-86- CHAITRA 2. 1907 (SAKA) Supplementary Demands 9S
General Discusslon and • for Grants (General) 1984-85
Indira ji's regime ... (lnterruptions). I have
been hearing them patiently, I have been
disciplined also and I never interfered when
they were speaking. So, I was saying that
during this ten years period. the wage of
the labour has been increased by 3! times
... {Interruption).
SHRI SAIFFUDIN CHOWDHURY:
What about the price rise?
SHRI JANARDHANA POOJARY: Yes,
I knew that this question will be put. The
prices have been increasing ... (Interruption).
MR. DEPUTY SPEAKER: I request
the Members not to interfere. Let him finish.
When he is speaking, it is our duty to
listen to him. If there is any point, you can
note down and ask him after his reply is
over.
SHRl .lANARDHANA POOJARY:
Prices increased by 2·~ times during this
period but the wage-ri~e has been 3~· times.
The Government of Ind ia under the leader-
ship of Congress Party i~ not against the
labour.
Now it has been made out that we are
not giving anything to the States, we are
showing step-motherlY treatment to the
States. At the same time, they say there is
a cut in the Centra) Plan outlay, we have
not provided sufficient funds for the Central
Plan. Then, for the last twO or tbree days,
they have been saying that the States have
not been given sufficient outlay, the Centre
is concentrating everything in its hands, it is
not doing anything for the States.
But what is the real position? The
central assistance for plan outlay for the
States has been increased by 39 per cent. It
bas never happened in the history of Centre-
State relationship. We have been able to
provide more funds to the States and yet
this complaint is made that we have not
done anything. Take agriculture, water sup-
ply, education etc. They are all in the State
sector or State subject for which we have
provided funds. The states have to take care
of the facmers, the rucal people, particularly
the poorer sections of the people.
What is the amount that has been given
to the States ? So far as the Plan is con-
cerned, the transfer from the Centre to the
States has gone up from Rs. 13,176 crores
in 1984-85 to Rs. 17,476 crores in 1985-86.
an increase of Rs. 4,300 crores. In the
current year assistance for state plan is
4313 crores, which will rise to Rs. 6,000
crores next year, a sharp rise t)f 39 per cent .
This shows that the opposition want to
criticise us just for the sake of criticism, just
for the sake of opposition. That is why
prof. Ranga in the beginning itself suggested
that there should be constructive criticism.
Then I come to what we give to the
farmers. So far as finance is concerned,
under the IRDP whatever we give to the
farmers, 25 per cent is subsidy. Suppose we
give Rs. 4.000 to a smaJl farmer. Rs. t ,000
out of it would be suhsidy, which is borne
equally hy the Centre and the State. If he
is a marginal farmer, the subsidy wiJI be
33-1/3 per cent. If the amount of loan is
Rs, 3,000, the suhsidy would be Rs. 1,000.
In the case or a tribal. the subsidy would
go upto 50 per cent. Yet, it has been stated
that we have not done anything for the
farmers.
Then, there is no income-tax for the
farmers, no wealth-tax or estate duty; of
course, estate duty bas he<"n removed for
others also. Then, in every kg of rice supp-
lied to the poorer sections, the subsidy is
60 paise and in the case of wheat it is 54
paise. The State Governments think that
they have been giving it. No. they arc not
giving. The issue price of rke is Rs. 2 08
paise. But before this issue price, we have
been giving a subsidy of 60 paise. Now~
take cloth. Some of the State Governments
have stated that they have heen giving suh-
sidy in the case of saree~. Here, I may
inform the Members that in the case of
cloth the Central Government is giVIng sub-
sidy to the tune of Rs. 105 ('fOres. In the
case of mill-made cloth there is a subsidy
element of Rs. 2 per square Metre of cloth.
In the case of hand loom cloth a rebate of
20 per cent is given. Now, I \\- ill show what
we are giving to the farmers. In the case of
fertilisers for every kilogram of fertiliser,
both domestic and imported, we are giving a
subsidy of 95 paise. per kg. In other words
for every bag of 50 kg. of fertiliser. a
subsidy of about Rs. 50 is being given.
Now, so far as the post cards arc con-
99 General Budget, 1985-86- MARCH 23, 1985 Supplementary Demands for 100
General Discussion and Grants (General) 1984-85

[Shri lanadhana Poojary] and the Postal Department. The number of

Central Government employees is 35 Jakhs.
cerned, they are used by the poor people. Two-and-a-half CTores of people are work ..
They are also used by the rural people. ing in the Government sector and they have
Now what is the cost of the post-card? We been able to get some concession. Now
arc ;elling it at 15 paise, but the economic we are to see who are paying the tax. We
cost of production, including the handling have given some concession. To whom
cost, comes to 59 paise. That means a can we give this concession? We can give
subsidy of 44 paise is there in one post-card. this concession to a person who pays the
The Finance Minister has to incur a deficit tax. For others tax concessions could not
of Rs. 187 crores from the postal side alone. be given. How many people are taken out
These are some factors to show that we are from this tax net? Ten lakh employees or
for the poor people and not for the elite ten lakh people, the assessees. Is it a mean
class. This clearly shows that we are for
achievement? And these are the People
the weaker sections of society.
who have been telling, 'Change the tax
Now I come to the Differential Rate structure', and the Opposition Party Mem-
of Intere;t scheme. We are providing loans bers are in alliance with our Janata Party
to the poorer sections of the society at a Members and BJP people. They have been
differential rate of interest of 4 per cent. telling that the corporate tax is the highest.
We are giving a rate of interest of J 1 per and they have been telling, 'Reduce it. When
you reduce it, you will collect more.' That
cent to the depositors of savings for five
WaS your philosophy. You have been tcll-
years. More-over, we have to pay for the
ing this for the last 37 years and you have
cost of the furniture, accommodation and
salary of the employees. That means for been claiming that unless it is done, there
every Rs. 100 of saving collected we have to cannot be any improvement. This IS your
spend about Rs. 13 to Rs. 14. So, while we philosophy. Yes, we have taken the chal-
are giving loans at the DRI of 40/0 to the lenge this year. We have taken a challenge,
weaker sections of society, we are accepting Government is not suppressing any facts,
the deposits at a cost of ] 3 to 14 per cent. we have reduced the tax for the corporate
It is not that we are working for the poorer sector, but with a warning: 'We have
sections of society? About 39 lakhs of reduced your taxes, now be honest and pay
poor people are taking the benefit of this the tax.' We must coUect more. We have
DRI scheme. seriously plugged the loopholes; bottlenecks
ha ve been removed, and stringent punish-
16.00 hrs. ment will be given. And for the information
of the House we can say that 1133 raids
Now, under the IRDP, so many people were conducted during a short span of two
have been given suhsidy. Every year we months. You have been hearing that there
have to cover 600 families, poor people. have been raids, customs raids. Almost
5 011 blocks are there in the country. At daily you have been listening to the reports
tl~is rate a sum of Rs. 3000 crores should about them, they are coming in the TV,
have been taken from cooperative banks in on the radio and through newspaper reports.
the Sixth Five Year Plan. How much have We are very careful and cautious, at the
we been able to give" How many families same time we are moving very fast. We
we have to cover in all? We have to cover have given concessions, We have reduced the
one-and-a-half crores families. Already We tax, but at the same time we have with-
have covered them. By February 1985-the drawn some other concessions. Now, it
target is for March 1985-we have been has been stated that we are going to lose
able to cover all. This is the performance in terms of tax collection rrom the corporate
under tRDP. Can anybody say that we sector. No, we are not gOing to lose. On
are not for the weaker sections? Can any- the contrary the estimate is abOllt Rs. 251
bodf say that we are against the pOor crores that we are going to collect. Not
people? And how many people are there
only that. The Supreme Court judgment
in the labour sector and Government emplo-
is also in OU[ favour. With the help of the
yees? Two-and.a-half crotes of people
Supreme Court decision we are Boing to
arc working in public enterprises, Railways colJect more. 'fIlat is goiqa to happen in
101 General Budget, 1985-86- CHAITRA 2, 1907 (SAKA) Supplementary Demands 102
General Discussion and
this country.
Sir, it has been stated that particularly
our Government is in favour of trade and
industry. Yes, we have to take care of
these people trade and industrY, labour,
farmers, common men and the poorest
among the poor who arc living below the
poverty line. How? In the beginning, I have
stated that we have to create more job. We
have to improve the production. We must
have the production in this country. We
must have the productivity. We are going
to enter the 21st century with a definite
philosophy of growth. Here also, the growth
will be there with the social objective. We
are not going to give up the social objective.
Sir, a referen(;e has been made to our
Party, the Indian National Congress. Yes,
we are the members of the Indian National
Congress. For the last 100 years, it bas
the history. Indian National Congress
history is the history of the country. We
had promised to the people of this country
freedom from political slavery. We had
promised to the people of this country fre\!-
dom from economic bondage. We have
got freedom from political slavery. We are
going to get economic freedom from the
economic bondage. For that purpose, we
have presented this Budget. It is a Budget
with a beginning. It gives the direction.
It gives the direction to the nation. Here
is the nation with 70 crores of people. Here
is the nation with about 31 crore people
living below the proverty line. Now. we
have to look after them. We are looking
after these people. We are committed to
it. That is why. our hone Finance Minister
·has presented this Budget on the floor of
the House. I am making one point very
clear. It has been stated that adequate
funds are not provided for NREP Pro-
gramme. It has been stated that adequate
funds have not been provided for the
IRDP programme. But I would say that
adequate funds have been provided. We
are committed to these programmes. We
are going to assure the House and the
nation that we are going to meet the genuine
requirements of these programmes. Even
actuals will be met by us and we are going
to meet the requirements.
Apart from this. there is one more
proaramme called the programme for edu-
for Grants (General) 1984-85
cated unemployed youth. It is for the
weaker section; it is for the middle class.
It may be for the children of a policeman;
it may be for the children of a Pressman;
it may be for the children of a clerk. if
tbey are unemployed. He may be a
child of.a bidi roller. For them also, we
have given some amount. Now, you may
ask, if there are uneducated unemployed.
how would you face it. You go in
for some business; go in for some small
scale industry. He will be given assistance
from the banks. Out of Rs. 25,000, 25<J1o
would be the subsidy amount. How many
people will be covered? How many people
have been covered? 2,42,000 people have
been covered in the current year. We can
say that about a sum of Rs. 401 crores has
flowed from the banks and from the coope-
rative sector.
Sir, this would be my last point. About
the price rise in the petroleum products,
our hone Members and the nation should
understand that there is a change in the
exchange rate. The exchange ra tc of dollar
has gone. UP. We have to pay more. Due
to this change in the exchange rate, we
have to give 1,000 crores more, How to
meet it 1 From where can we get it? Some-
body should pay; the consumer should
pay. Otherwise, there will be more deficit.
Should we not act? Should we keep quiet 1
If we had kept quiet, what would have been
the effect?
I will give you an example. In the
year 1979-please keep it in mind the year
1979 when the Janata Government was
there-the inflation was 21.4 per cent.
Nothing waS done during that period. The
Government of India at that time kept
quiet. Next year, our Government came to
power and raised the petroleum prices.
During the period between June, 1980 and
1981 the petroleum prices were raised thrice,
ranging froro 25 per cent to 40 per cent.
What was the effect? The infla.tion came
down from 21.4 per cent to 16.7 per cent.
It was said that there would be more infla-
tion. But the inflation came down. Why
I am making this point is that it is a ques-
tion of better management of the economy.
We have to see whether there is bad manage.
ment Or good management. If you are gOing
to manage it properly, the innation will not
be there.
 103 General Budget, 1985-86- MARCH 23, 1985
General Discussion and
[Shri Janardhana PoojaryJ
What is the current inflation? It is
5.5 per cent. There will be inflation and
the prices will rise. To a certain extent, the
price rise will be there. We do not say
tbat there will not be any price rise. It will
be there. But what would have bappened
if we had kept quiet? The deficit would
have been more. In the year 1979, the
deficit was to the tune of about Rs. 2,475
crores. Now also, if we had kept quiet, the
deficit would have been more. Tben, the
opposition panies would have said that the
deficit bas been increased to the maximum
extent. We are now telling the nation to
pay more. We have to pay Rs 1000 crores
because of the change in the exchange rate.
We have to pay more. So, we have to make
a sacrifice.
During the freedom struggle, there was
a sense of patriotism amongst the people of
this country. What has happened to that?
Can't we contribute something forthe
nation'S economy. The image of the country
is involved. The trade has to pay; every-
body ha.s to pay. The hon. Member, Mr.
Indrajit Gupta, made a point that every
family has been affected. Yes, I contacted
the poorest of the poor. I explained to him
and said to him, "You have to pay more,"
He said, "Yes ; I will pay more. I am a
~ patriot, It will be my contribution for the
I development of the country." That should
~be the spirit amongst the people of aU
. sections of the society.
Let us congratulate the Finance Minister.
Under the circumstances, what would have
been the position of any other Finance
Minister? You place yourself in his place.
What would you have done? Here is a
man who has given direction to the economy
of the country. Let uS give encouragement
ito him. Let us have more production ; let
us have more food; let us have efficient
t_administration ; let us have clean adminis-
~tration.
With these words, I conclude.
SHRI AMAL DATTA: Did he mako
his speech as a Minister?
MR. DEPUTY SPEAKER : Final reply
will come.
Supplementary Demands for 104
Grants (General) 1984-85
SHRI KADAMBUR JANARTHANAN
(TiruDelveli): Mr. Deputy Speaker t I rise
to support on behalf of All India Anna
DMK the Budget of Shri Rajiv Gandhi
which is resultoriented.
As has been rightly pointed out by the
ex·Finance Minister, Shri H.M. Pate), the
Budget represents various sections of the
People who have given a massive mandate
to this new Government. This Budget makes
the people convinced that whatever judgment
they made in 1984 in electing this Party to
power is correct and that this Government
will make India a new India.
The hon. Minister of Finance has told
us that the good crops this year will help
reduce the effects of inflation due to the
deficit financing. There is an old proverb
that the Indian Budget is a gamble of the
mOnsoon. We have to depend upon agricul-
tural productivity for our prosperity. Our
new Prime Minister, Shri Rajiv Gandhi, has
often been saying that this is a farmers'
Government. He did not stop at that.
He proved what he has been saying by
bringing a new Scheme, the Crop Insurance
Scheme. If this Scheme is implemented with
all the technology available, the grass roots
of our society will be benefitted. Is it not
bringing about a revolution which we never
before beard of? Shri Rajiv Gandhi has
introduced this Scheme not on the advice of
a mere small group of advisers but on the
advice of crores of people whom be happe-
ned to meet at the time of general elections .
It is the Indian people who had advised
Sbri Rajiv Gandhi to introduce this Scheme.
I would, therefore, advise this Government
that the crop insurance scheme should be
implemented in right earnest.
The crop insurance scheme should be
implemented first of all in the dry crop
areas which are at present growing crops
by four types of irrigation namely, the rain-
fod crop, well-water irrigation., lake water
crop and underground water crop. Such
areas exist in the States of Vidarbha, parts
of Andhra Pradesh, and Tamilnadu. The
crop insurance, scheme should be introduced
in these areas first.
The Government has included wheat,
pulses and oilseeds under crop insurance
scheme. I am extremely sorry they have
 lOS General Budget, 1985.86- CHAITRA 2, 1907 (SAKA) ,supplementary Demands 106
General Discussion and
forgotten cotton which is the major indige-
nous agricultural product and which is
entirely consumed by our textile industry.
Cotton is the major industry of India.
Cotton is being sold at throwaway prices
in Maharashtra, Andhra Pradesh, Tamilnadu,
Gujarat and Punjab. Even the CCI and the
National Textile Corporation are not giving
good price for cotton nOr are they coming
forward to pay remunerative prices to the
farmers because they do not buy direct
from the farmer but through the interme-
diaries.
I therefore request the Government to
set up a Cotton Board immediately. At
present, there is the Tea Board and Coffee
Board but there is unfortunately no Cotton
Board. As an agriculturist from Tamilnadu,
I request the hone Minister that Cotton
Board is very essential for the farmers and
the crop insurance scheme should be imple-
mented in right earnest. The crop insurance
scheme should not be mismanaged and it
should not be allowed to go to a few hands.
When the loans were given in the context
of the implementation of the 20-Point Pro-
gramme, they were given both to the good
and the bad people. When the Crop
Insurance Scheme is implemented, it must
be implemented properly and the dry crops
should be given the first preference. The
cotton crop should be included to be covered
under this Scheme. You may say that cotton
is a cash crop. But I WOll ld point out that
the entire cotton is used indigenously in the
textile industry. Till 1964 we were importing
global cotton for the production of 80 and
100 counts yarn. Now we are producing
everything here; we are not importing even
a single pound of cotton. Suvin cotton pro-
duced in Tamil Nadu and Andhra Pradesh
is producing excellent yarn. eveD 120 counts
yarn. The farmers should be encouraged. I
request the hone Minister to set uP a Cotton
Board and save the cotton farmers by giving
them proper prices. They can get proper
prices onJy if the CCI and the NTC work
properly and correctly.
Though during the Sixth PJan period the
amount spent on Accelerated Rural Water
Supply Programme was about Rs. 925 crores
as against the original outlay or Rs. 600
erores, still thousands of villages arc left
OUt. So, it is the duty of the Central Govern-
for Grants (General) 1984.85
ment to assist liberally th~ States for this
AR WSP, so that, by 1990 not even a small
panchayat will be left without drinking water
facilities.
Once again I say that this IS a result-
oriented budget except for the small rise in
respect of petroleum but the Finance
Minister has explained the position.
I am sure that the new India will grow
from strength to strength. In 1948 when the
Father of Our Nation, Mahatma Gandhi,
was assassinated, we wept on hearing the
news over the radio. But in 1984 when our
late Indiraji was assassinated. we wept
viewing the whOle thing in T.V. That is the
advance India bas made. and I am sure we
will mareh on and on mak ing more and
more progress.
SHRI TARUN KANTI GHOSH
(Barasat) : Mr. Deputy-Speaker, Sir,
first of all ] want to thank the Finance
Minister for presenting a Budget which is
very balanced, not from the point of view
of balancing the deficit by earning revenue
for the expenditure, hut from tbe
point of view that it has tried to do good
to the different categories of people: it has
done some good for the workers, for the
peasants and for the middle cJa~s ~ also it
bas given some impetus to industry.
I want to thank the hon. Minister
particularly for introducing the Crop
Insurance Scheme that was being agitated
for a long time. But I would like to make
a request to the hon. Minister of State who
is present here, namely, that jute should
also be one of the crops (0 be covered under
the Crop Insurance Scheme. Jute is one of
the major crops in my State, and tllat is
why I make this special request to him.
The need for development of our country
was recognised when India became flcc. and
ODe of the major objectives was that India
as a whole should be developed equally.
But may I say that the eastern parts of
India, not only West Bengal but also Bihar.
Orissa, Assam the north .. eastern States and
also U.P." if I may include that also, are
very backward economically in comparison
to the other parts of our country. I feel
proud when I see the economic development
in Punjab because Punjab is also a part of
 107 General Budget, 1985-86- MARCH 23, 1985
General Discussion and
[Shri Tarun Kanti Ghosh]
India and I consider Punjab as my State. I
feel very proud when I 80 to Bombay
because Bombay looks almost an European
city but I would like to plead that more
emphasis on economic development of this
backward area of Eastern India should be
laid.
The regional facilities that were being
enjoyed by Eastern India on the dawn of
freedom were taken away by equalisation of
prices of steel and coal. When Dr. Roy
was alive he was agitating against this and
since then all the State governments inclu-
ding that of Shri Jyoti Basu have been
agitating against this unfair thing. If there
Is er;Jualisation in respect of all the material
we do not mind but would you get cotton
tn Bengal at the price the cloth mill-owners
get it in Bombay and Ahmedabad? Is it not
a joke that a man who is living within ten
miles of the pit from where coal is drawn
has to pay more than what a man pays for
the same in Bombay? We are all Indians.
There is no doubt about it and everybody
should have all facilities but this equalisa..
tion has taken away natural advantages that
were available to Eastern India. I think
something should be done about it. A
committee was appointed to go into this
question and they recommended it should
go but no tangible action has been taken so
far about it.
Sir, I want to stress that there is need
for creating more jobs in West Bengal. I
thank the Finance Minister for presenting a
budget which in my opinion wouIa give
impetus to industrY but apart from industry
somerhing special should be done for Eastern
India because the jobless, particularly educa-
ted unemployed, in my State and around
are the highest in India.
Then a wO~d about refugee rehabilita-
tion. In my State more than one-fifth of
our people are refugees. They came from
East Bengal which is now Bangladesh. There
are many problem~ of these peop) e but
there is no Refugee Department here. Until
and unless We solve their problems the
economy of Bengal cannot be revived. I feel
very strongly about it and something positive
should be done about them to make them
economically rehabilitated.
Supplementary Demands lor 108
Grants (General) 1984-85
MR. DEPUTY SPEAKER : Please con-
clude.
SHRI TARUN KANTI GHOSH: Sir, a
word about the position of scheduled castes
and scheduled tribes. 1 come from a cons-
tituency where there are lot of people who
belong to scheduled castes and scheduled
tribes and when the objective of this govern-
ment is to uplift the downtrodden I feel
something special should be done for this
community also.
Before I conclude I would like to request
the hon. Minister to consider about lowering
the price of diesel oil because diesel oil is
neceSsary for bringing in food and other
materials in the city. Until and unless you
lower the price of diesel oil the prices of
other commodities will rise. I don't mind
petroleum prices going up but Government
should not allow the diesel oil prices to
increase.
Sir, my last point is about the develop.
ment of Calcutta. As has been said by the
Prime Minister and myself being a man
from Bengal I feel sorry that my city which
was once the second best city in the then
British Empire has come to this stage. No
doubt, it is in bad condition. We shouJd do
something special to revive this city which
was once the pride of not only Eastern
India but also the whole of India.
With these words, I thank the Finance '
Minister for bringing forward a bold and an.
imaginative budget which wi II do a lot of
good to our country.
16.30 hrs.
[SHRI VAKKOM PURUSHOTHAMAN
in the Chair]
SHRI AMAR ROYPRADHAN (Cooch
Behar): Mr. Deputy-Speaker, Sir, 1 have
gone through this budget very minutely and
I have also listened to the speech of the
State Minister of Finance, Shri Janardhana
POojary. It becomes crystal clear that it is a
budget for the 'haves'. It is a budget for the
4kulaks'. It is a budget for the monopoly
houses. It is a budget for big bUSiness
houses. Only there are some crocodiJe tears
jn this budget for the poor agriculturists,
namely, the agricultural labourers and the
share croppers.
109 General Budgtt, 1985-86- CHAITRA 2, 1907 (SAKA) Supplementary Demands 110
General Discussion al1d
In this budget one finds there is a buge
deficit of more tban Rs. 3,600 crOfes and
the loans from all sources amount to Rs.
10,900 croreS. J don't know how you will
fill up this gap. As it is not a budget for
the common man. It is a budget for tbe
mill owners, black-marketcers and boarders.
In his speech the hon. Minister of State
for Finance has said that he would like to
have some suggestions from the members of
the Opposition. The first thing] would like
to say is that socialism as included in the
Preamble of our Constitution by the 42nd
Amendment now you have put this word
'capitalism' in place of socialism. That
socialism should be removed. That is my
first suggestion. The wide deficit gap you
have left can be fillIed only througb new
taxation or printing of new currency notes
which wi1l further add to the sufferings of
the common man.
MR. CHAIRMAN: Please conclude.
SHRI AMAR ROYPRADHAN : I do
admit that you have mentioned in your
budget speech that in the last two years
production has increased very much and, as
such. you can meet the deficit if the pro-
duction also increases in the prescnt year.
Can the hon. Minister assure me that pro-
duction will he much more in the coming
year as compared to tbe last year? ) say it
because our agriculture depends mainly on
nature and if there is flood or a drought
then all our beges will get belied. Supposing
for a minute there is more production tben
what will happen? J would like to give a
warning. NAFED has said that whenever
production increased, it has resulted in dis-
proportionate fall in prices. NAFED further
said that if this situation was allowed to
continue, it might lead to stagnation of
production and impoverishment of agricul-
tural producers as a whole.
Then, regarding Agricultural Prices
Commission, I would like to point Ollt to
you that this Agricultural Prices Commission
is there simply in order to help only the
industrialists. It is not there for helping the
agriculturists. It is a white elephant. This
Agricultural Prices Commission may be
named as 'White Elephant'. (Illterruptions)
Nothing is being done for the poor people
of this country. The Finance Minister said
for Grants (General) 1984·85
in his Budget speech-'Let us put our
shoulders to the wbeel.' But the fact is, the
rural poor are so poor during the last 30
years of Congress administration that the-y
are not able to stand even, not to spe:ik of
putting their shoulders to the wheel. They
are now completely Jying down on the
ground and they cannot speak even. This
Budget is a capitalist Budget. The capitalist
wheel is crushing the poor people of this
country more and more. The hOD. Minister
said that they are for the philosophy of
growth. But, I would like to remind you
what the Prime Minister said about Calcutta.
The Prime Minister said 'Calcutta is a dying
city.' J am sorry for his rernark but it is a
childish remark. (Interruptions)
you are aware ...
(InterruptioI1S)
MR. CHAIRMAN: Order, order.
SHRI AMAR ROYPRADHAN : You
are aware, Mr. Chairman, of the fact that
Calcutta is the heart of West Bengal. Don't
forget that Raja Ram Mohan Roy, Swami
Vivekananda, Rabindranath Tagore, Netaji
Subhas Chandra Bose and Nazrul Islam are
from Bengal.
(Interruption)
SHRI PRIYA RANJAN DAS MUNSI
(Howrah): Mr. Chairman, Sir. I rise on a
point of order. My point of order i:-. this.
He should not make any reference or
any comment about the remarks made in
the other House by the bon. Leader of this
House. (Interruption) Let me finish my sub-
mission on my Point of order. I have been
listening to tbe hon. Member very attentively.
If tbose things are to he discussed it is better
to give notice, to examine the script first.
SHRI AMAR ROYPRADHAN : Sjr, it
is a newspaper report.
SHRI PRIY A RANJAN DAS MUNS} :
Rajya Sabba is a different House. If it is
a remark made in the Lok Sabha it is an
right. But no remark made in the other
House can be commented upon in this
House without a proper notice havinl been
given for that purpose. That is not allowed
and tbey cannot l!O on Jike 1his. It is not
proper.
111 General Budget, 1985-86- MARCH 23, 1985
General Discussion and
MR. CHAIRMAN: It is a fact that
what happened in the other House cannot
be discussed here.
SHRI AMAR ROYPRADHAN : I wish
to submit that I never referred to Rajya
Sabha. I did not say anything about the
other House.
MR. CHAIRMAN: I have not expun-
ged his remark.
Now1 Shri Bharat Singh,
Hon. Members from the Congress party
may kindly bear in mind that the Congress
party bas allowed them only five minutes.
After 4 minutes. I will ring the first bell.
Hon. Members may please wind up within
one minute.
SHRI H.A. DORA (Srikakulam): If
you give 5 minutes only, it will amount
to discrimination, as some other Hon.
Members were given more than 5 minutes.
MR. CHAIRMAN: The party is com-
petent to do that. Now, Shri Bharat Singh.
(Interruption)
MR. CHAIRMAN : NOw, Shri Bharat
Singh.
[Translation]
SHRI BALKAVI BAIRAG I (Mand-
saur}: Mr. Chairman, Sir, while supporting
the Budget presented by our Finance
Minister, I would like to congratulate him
for ....... ..
[English1
MR. CHAIRMAN: I have called Shri
Dharat Singh or the Congress party. I am
really sorry If your name is Shri Bharat
Singh.
[Trans/ation]
SHRI BALKAVI BAIRAGI : Probably
you said Bairagi.
SHRI BHARAT SINGH (Outer Delhi) :
Mr. Chairman, Sir, I congratulate the
Finance Minister from the core of my heart,
because be has kept in view the interests
of the poor farmers, the labourers, the
Supplementary De1fl/lllds for 112
Grants (General) 1984-85
government employees, the small scale indus.
tries and the shopkeepers while formUlating
the Budget. The Finance Minister has ful-
filled the promises made by our par~y in its
manifesto.
The Finance Minister has prepared tbis
Budget keeping in view the 20-point pro.
gramme introduced by our late Prime
Minister Smt. Indira Gandhi and also the
ideas of our young Prime Minister, Sbri
Rajiv Gandhi, for the progress of our
country. A provision fOr Crop Insurance
Scheme has been made in this Budget. Our
poor farmer toils hard round the year but
he has to face acute difficulties due to
hailstorms, floods, droughts, etc. With the
destruction of his crops. he himself is
ruined. The question of crop insurance was
discussed several times in order to save him
from ruination, but up till now it was not
given a practical shape. I congratulate the
Finance Minister on introducing the Crop
Insurance Scheme.
Mr. Chairman, Sir, you might be know-
ing that the late Prime Minister, Smt.
Indira Gandhi, had nationalised the banks
to benefit the farmers. After nationaJisation,
bank branches have been opened in each
and every village. With the assistance pro-
vided by tbe hanks, the farmers installed
tube-wellS, purchased tractors and got irri-
gation facilities and improved varieties of
seeds, as a result of which agricultural pro-
duction increased. Previously, Our produc-
tion was inadequate and we had to import
foodgrains from abroad to meet our require-
ments, but now our production has gone so
high that we can even export foodgrains.
With the efforts made by Indiraji, the
irrigation facilities increased, improved
varieties of seeds and good quality fertili.
zers were made available due to which Our
farmers were able to increase their prod~c­
tion considerably.
You know, lakbs of people were bene-
fited by the 20-point programme introduced
by the late Smt. Indira Gandhi. PreviOUSly,
after school education, Our YOung boys
used to remain unemployed and after fall-
ing 'in wrong company they used to indulge
in undesirable activities, but ever since the
IRDP under the 20-point programme has
been placed under tbe cbarge of the Deve-
lopment Commissioner in Delhi, a Jar.,
 113 General Budget. 1985-86- CHAITRA 2, 1907 (SAKA) Supplementary Demands 114
General Discussion and
number of youngmen have been provided
with employment. Loans were given at an
interest of 4 per cent to people living in
resettlement colonies in Delhi, to Harijans
in villages and to small farmers. In other
words. people Were given assistance in every
way so that they could stand on their own
feet.
I feel that almost all sections 01 the
society have been benefited by this Budget.
For government employees and middle class
people, the income-tax limit has been raised
which has provided relief to about 10 lal{h
people. Radio and Television licence fee bas
been abolished. Licencing system has been
aboHshed for small-scale industties. All
these steps have provided relief to small
farmers, labourers, Harijans, backward
classes and petty shopkeepers. But One
thing J must say. Although the farmers
have been given considerable reHef yet one
thing is pinching them. The increase of Rs.
6 effected in the price of wheat is quite
inadequate in these days of price-rise. The
prices of diesel and kerosene oil have
increased. You should look into it and
check the price-rise so that the poor could
use them.
About three and a balf lakh unemploy-
ed young men have been provided with
employment. Relief bas been given in
income-tax. You have taken a commendable
step by raising the income- tax limit from Rs.
15,000 to Rs. 18,000. This limit should be
raised to Rs. 25,000, as has been pleaded
by my other colleagues also. '
On account of increasing population in
Delhi, a large number of houses have been
built outside Lal Dora. Lakhs of unautho-
rised houses have come up, but these are
without electricity on account of which their
children cannot study. All the 612 unautho-
rised colonies should, therefore, be elecl:tri-
fied so that children of the poor people
could study we1t. Lakhs of children study
there in schools.
I would like to say one thing more.
D.D.A. has invested 16 crores of rupees
from its own account in resetlement colonies.
This amount was to be given to D.D.A. by
the Central O~vernment. D.D.A.'s work has
slowed down due to shortaae of funds.
Grants (General) 1984.85
D.D.A. may, therefore, be given the said
amount of Rs. 16 crores in order to expe-
dite the works in resettlement colonies.
I would also like to submit that viJlages
are linked with each other by Kacha roads.
Pucca roads should be constructed there
and the dividing verges constructed in each
village after consolidation of holdings should
be made pucca.
Mr. Chairman, Sir, I am grateful to you
for having given me an opportunity to speak.
[English}
SHRI P.A. ANTONY (Trichur) : The
most striking feature of the Budget is its
bold initiative and imaginative character in
planning a long term economic pol icy for
the development of the nation. This Budget
is the base of the Seventh Five Year Plan.
Sir, under the present infrastructure, industry
can grow faster than the previous years so
that more employment can be given to the
people.
In the year 1950, our food production
was only 50 million tonnes, whereas the
population was about 35 CrOfes. Now, in
J985, our food production is J 50 million
tonnes. Whereas our population now has
just doubled, our food productions has
tripled. Now, India became self sufficient in
food and it is the third in the world. That
is our pOSition today and We have achieved
it througb democratic means. With all its
differences and diversities. We are a leading
example to aU the other non-aligned coun-
tries. We have got so many engineers. so
many technocrats and we have a good
management system also. So, we can utilise
these experts, the entire educated people to
industrialise our country. This is the proper
time and this is the proper direction. I
congratulate our Prime Minister and the
most sincere Finance Minister for this move.
We are a leading nation and India is the
champion of the Third World. Almost aIt
the non-aligned countries are looking up to
us because we bave been able to 80 throuah
the process of democracy with all its diver-
sities, we find a way to feed our people and
we afe developing very fast and are able to
compete with the other world powers.
The bUdget touchcs the lives of the
different strata of people, the entire commu-
.115 GeMarl Bud6~'f 198.5-86- MARCH 23,1985
General Discussion and
[Shri P.A. Antony]
olty the land.les s labourers, the marginal
and' sman farmers and the middle class
people who are the government employees
and factory workers. Of course in a deve-
loping nation witb dynamism, taxes arc
naturally charged. I do not know why our
Finance Minister is more serious about the
running of our public sector companies. Ou~
hone Minister of State for Finance, Shn
Janardhana Poojary stated that we have
invested Rs. 30,000 crores in the public
sector. We are not getting even minimum
dividend from it. Suppose if there is ,a pro-
per managerial set up and proper direction
for this 30,000 crores of rupees, at least 20
Per cent dividend you will get if you deposit
it in the nationalised bank; you will get
Rs. 3,500 crores as the total dividend. Wh!
is the government not thinking about Jt
serious1y to make it all right? If the govern·
ment with all sincerity, can change the
cour;e of the management, it will heJp in
the development of the backward areas.
Now, the Managers are the senior
bureaucrats occupying higher posts and
leading a better and happy life. But that
is not the point. You have to find out the
proper people. You have to make our
labourers an organised wing according to
the needs of the country. Let them be
matured. They have got all facilities com-
pared to the other poor sections; let them
thannclise in a bettcr way, work hard and
get more benefits so that they can serve the
nation.
It is a fact that there is a parallel eco-
nomy. For parallel economy, our Finance
Minister has got some proposals. That is
very good. But Jet us face the truth. You
'cannot stop the black money by the
measures of the government machinery. Let
us think on the lines of voluntary disclosure
of black money by some attractive way.
The most burning problem in India is
the housing problem. Let the black money
people construct houses and then rent them
out and the government should take some
percentago out of it so that it can be regu ..
wised.
In Kerala State, the unemployment pro-
blem is the highest. The 'money spent by
the Kcrala Government for social upliftment
Supplementary Demands lor 116
GrfJIfll (Gt!1I6rtl/) 1984-85
is 40 per cent t for health 20 per cent. They
ihouJd provide for schools, drinking water
and dispensaries. Now, there is no industry,
but the literacy rate is very high. So, please
divert industrial investment to Kerala and
also my constituency for establishment of
more industries. I am representing my cons-
tituency, Trichur, for the last 28 years.
Previously, it was represented by CPl.
Guruvayoor temple is the most important
pilgrim centre in South India where
thousands of people are visiting daily from
all over India. Hence, I request the Go ..
·vernment to extend the railway line from
Trichur to Guruvayoor. According to 1981
census Trichur Constituency has got a high
percen'tage in literacy So, an Indian Insti.
tute of Technology may be started there
because it has got the infrastructure. Deposit
money of the nationalised banks in Kerala
is not being spent properly. 80-90 per cent
of the entire deposits are going to the major
cities in the North, So, please see that there
should be a regional balance. The State
Finance Minjst~r, Shri Poojary should look
into the matter and sec that there should
be a regional balance. Thank you.
[T'ranslation]
SMT. MADHURI SINGH (Purnea) ~
HOD. Deputy SPeaker. Sir, I rise to support
the Budget for 1985·86 presented by the
bon. Finance Minister. This Budget has
provided considerable relief to the middle
class people. Minimum limit for income tax
has been raisod. The rates of taxes have
been considerably reduced and I welcome
the abo1ition of the surcharge on Income-tax
and the Compulsory Deposit scheme.
Limit for wealth tax has also been increased.
It would have been more appropriate had
this limit been increased further. I would
like to thank the hone Finance Minister ror
aboIishina tbe Estate Duty only a victim
of tbis cruel Estate Duty, especially on the
death of the head of & middle class family
knows that one had to face numerous
unnecessory difficulties .. for a year in the
normal course and sometimes even for two
or three years and, as explained by the
Finance Minister, this duty fetched only a
meagre revenu~ to the Government.
This year's Budact symbolises tho
development"oriented policies of the new
Government in manY' respects. Concession
 117 G.Mral Budget, 1985-86........ CHArtR'A 2, l~t7'(SAKA) Suppiemerrtary Demands .f18
General Discussion and
has been given in corporate Tax. ''Cohces-
sian in excise duty or in customs' bas also
been given on many articles in tIie ·inteJtest
of industrial development. There'lite many
other provisions in the Budget which 'would
f
facilitate economic development arid would.
especially, accelerate industrial 'developrileht.
All these provisions have been welcomed by
most of the people in the cout1tty.
It is essential to mobilise ·resources for
the security and progressive devolopment of
the country, and hence one can understand
that in that context increase in some of· the
taxes is ine.... itable. The proposal made by
the hon. Finance Minister to increase some
·taxes, it is hoped, would not attract much
opposition; still, I would like to iay that
it would be appropriate to (:0asider lome
reduction in excise duty proposed to be
levied on paper. The hon. Finance Minister
bas increased tbe allocatIon or'centra1 grants
fOr tbe State Plans by 39 per cent as
compared to the current year which will
prove very helpful in the economic d'eveTop..
ment of tbe backward states ant! I patti-
cutal1y tbank tbe 'bon. Finance Mrnister
for this.
Inflation leads to difficulties in develop-
m~ntal proarammes. It also adversely
affects the normal life of the common roan.
Our Government have kept the wholesale
prices under a reasonable cbeck. Althoui~,
increase in consumer prices bas been a bit
hi,&h yet it ca nnot be termed al unbalanced.
AJJ in previous years, this year"s Budget
also shows a huge deficit. I accept the
assurance given by Government tbat tbe
provisions made in the Bl,ldgct will~ he~p
to keep the in~tion under cbeck and .It Will
be possible to stabilise the ,prices, but it is a
serious question.
:aeing a housewife, I would request the
Govermnent to keep a strict watch over
inflation ail4 suggest tha~ con~i~tent efforts
be made t() check the increase not. only in
wholesale prices but also in consumer prices.
It will not be out of place to .JDa.ke a
mention here. of some of the .problema of
fP.y state and my constitue~, which relate
to tbe c,enter also, ,Bihat has been. t~e
most .de6cit State in the matter of ,ClocCelClty
and there has been a co.mpla~nt for a.lO~8
time reprdinl mismanagement 10 the '.mittel'
jor .Grants (General) 1984.85
of power supply. "EleCtriCity Is in tbe Con-
current List and on this around, I wO\l1d
request that tbe central Government shOUld
adopt some concrete measures for jncre~sina
the generation of electricity in the Bihar
State in consultation with the State C,overn-
ment, so tbat a ppropriate and lasting
improvement could be brought about in tbe
situati~n. Purnea district of Bihar is my
constituency as also my biItb place, Purnea
Jw; a Jarle area and a vast population.
Also, it is situated on the international
border. In the vorth, it toucbe..\ the Nepal
border and in the south-cast there is the
border of Bangladesh within a few miles.
The national hilhway named ., Assam
Access" passes tbrough Purnea. This hish-
0'
way is of great Importance from the point
view of nalioBa) security as also from
the poiot of view of transport in Purnea
d.ist(ict. But, it is a matter of regret that
tbis highway is in a pitiable condition for
the last so many years. I request tbe central
Government to pay special attention to this
highway and improve its condition.
With these words. I thank the bon.
Finance Minister for presentilll a balanced
Budget.
17.00 hrs.
[English]
SHRIK. RAMACHANDRA REDDY
(Hindupur): I risc to oppose the Budget
on the ground that it is anti·poor, pro-rich,
anti.rural and pro-urban. I am not making
these allegations merely. There are a number
of points which can prove that the ullCiil-
tions I am makin" are correct.
Some )'eople may say that the Budget
is good in parts. But like the proverbial
curate's egg which is good in parts and
totten in many other parts, being unfit for
consumption, this Budget also cannot be
commended,
'Fhis Government has imposed a lot of
burden on the poor people and given
massive concessions to the rich, One such
thiDg is that the Government .has given
>import duty concessions on certain cOJn-
PODCIots of pms and jewellery mak[ng
machiocrY but increased the' excise duty On
bid~. Oems andjeweIJeries are .used by the
'rich' Whereas bidfs are cOQSumed by the
119 General Budget, 1985.80- MAttCH 23, 1985
General Discussion and
[Shri K. Ramachandra Reddy1
poor. This Governo"lent has not imposed.
any tax on cigarettes which are consumed
only by the rich.
The Government bas given massive
concessions in the form of personal income-
tax, surcharge on income-tax, wealth tax
exemption to the rich and affluent only. At
the same time, the Government has increased
the duties On crude petroleum from 100 per
cont to 200 per cent. The excise duty on
crude petroleum was only 9.5 per cent in
the ] 983-84 Budget. By increasing tbe price
of crude petroleum, the prices of kerosene
and diesel are increased, the expenses of the
travelling are increased and freight charges
on the movement of essential goods are
also increased. Thus tho burden of common
man has increased by Rs. 620 crores
whereas tax concessions to the tune of Rs.
467 crores are given to the rich urban
dwel1ers.
The Government has abolished the
licence fee on radio and TV but has increa-
sed the levy on aerated and soda water and
corks. Government has exempted the com-
pu ters and electronics from import duties
and at the same time raised the duty on
cement, paper, household and toilet soaps,
commercial vehicles and cooking gas. Go-
vernment has reduced import duty on raw
woo1 and polyester wool but increased the
duty burden on cotton yarn by 25 per cent.
Government has given exemption from
excise duty on zip fastemers but imposed
new excise duty on panmasala containing
nuts, lime, copra, menthol. etc. Thus the
Government is very benign towards the
rich and very harsh towards the poor.
The Government has treated the rural
development with a step-,motherly attitude
and funds allotted to them are very meagre.
IRDP has been allotted Rs. 215 crores this
year as against Rs. 216 crores last Yr,ar.
NREP has been allotted Rs. 235 crores this
year 8S against Rs. 236 crores last year.
Small scale industries and village industries
are given Rs. 175 crores this year as against
Rs. 135 crores last year. Money given to
fertilisers is Rs. 265 crates this year as
compared to Rs. 452 crores last year. For
-The speech was orisinaUy dolivered in Maratbi,
Supplementary Demands lor 120
Grants (General) 1984-85
iron and steel which is used by the agricul-
turists, the allotments have been cut down
to Rs. 643 crores this year as against Rs.
980 crores last year. Agricultural financial
institutions have been allotted Rs. 165 cror~
as against Rs. 297 crores last year. AJlot-
ment on housing has been reduced to Rs.
39 crores from Rs. 84 crores last year.
Certain programmes for welfare of Schedul-
ed Castes and Scheduled Tribes and BCs
were allotted Rs. 71 crores Jast year Whereas
this year it is only Rs. 42 crores. Thus a
comparison of the allotments of the rural
development show a sizeable reduction for
rural development. Many concessions and
amenities have been provided to the organi-
sed labour but no effort is made to spell
out any improvements for the uDorganised.,
inarticulate agricultural labour in rural and
semi-rural areas.
Thus the Budget is anti-poor and pro-
rich and I oppose it. I also request the
Finance Minister to be kind enough to
remove the taxation on articles such as
bidis, cotton yarn, pan-masala, soaps,
kerosene and diesel oil, which are extensi-
vely used by the poor people.
[TrQlU/ationj
·SHRIMATI KESHARBAI KSHEER-
SAGAR (Beed) : Mr. Chairman, Sir, I rise
to welcome and extend my support to the
General Budget for 1985.86. I am reminded
of what our young and dynamic Prime
Minister, Shri Rajiv Gandhi said. ·'The
challenges before our country are many. We
bave to modernise India. We have to change
the thinking of the people of India to look
ahead 'into the future and not to keep
dwelling on the past. We have to make
India self-reliant in every important sphere.
We have to create a dynamic country that
is equal to any other country in the world. n
1 am glad that hone Finance Minister has
formulated the best budget keeping in view
the main objectives expressed by our Prime
Minister.
I also recall at this juncture those
immemorable words or our great departed
leader Smt. Indira Gandhi who said, "No
section of our vast and diverse population
should feel forgotten. Their neglect is our
collective lOIs." I am happy that hon.
 121 (Jenera I Budget, 1984-85- CHAITltA 2, 1907 (SAKA) Supplementary Demands 12t
General Discussion and
Minister has prepared the budget which
intends to give relief to all sections of our
society. It is indeed a very comprehensive
and progressive budget.
This budget has made sufficient alloca-
tion (or several sectors such as agriculture,
rural development. sman industry, science
and technology. education etc. It has pro-
vided relief to workers.. farmers, landless
labourers, traditional artisans, sick industrial
units, students and research workers etc. by
offering several concession$. Sufficient funds
have been earmarked for implementation of
2o.point programme and measures to stop
pollution or- the river Ganga. Free education
(or girls upto 12th standard has been
announced by the Government. It is a very
laudable measure. Another significant feature
of this budget is that it has adopted a prac-
tical policy regarding estate duty and wealth
tax.
Agriculture is the main occupation of
70% population of our country. Though
we have attained self.sufficiency in respect
of foodgrains duc to several measures. We
have undertaken in the past, it is unfortu-
nate that the condition of our farmers is
very miserable. His fate depends upon
vagaries of nature and cannot sustain him-
self in the natural calamities like droughts,
floods etc. I am glad that the Government
has decided to implement a scheme called
"crop insurance scheme in selected 100
districts in the country. T request that these
districts should be selected from the back-
ward areas so' that the scheme will benefit
the poor farmers. As far as Maharashtra is
concerned. I want to say that as crops of
Jawar and Bajra are grown by majority of
farmers they should be included amongs the
crops for which insurance cover will be
provided. The Government should make an
attempt to give remunerative prices to
agricultural produce. The Government has
proposed to introduce a scheme called
usocial security scheme" to provide compen-
sation to landless labourers, small farmers
and traditional craftsmen in tbe event of an
accident. The amount of compensation ~s
presently fixed at Rs. 3000. I request that It
should be raised to Rs. '000. So that the
effected families are financially helped in
the hour of crisis. The scheme will help the
persoDS who arc not covered under life
inauranco scheme.
lor Grants (General) 1984.85
This budget has given relief to Govt.
employees by increasing the limit of income
from Rs. lS,OOO to 18,000. It should be
further increased to Rs. 20,000 so that no
class III employee has to pay tax. The Go-
vernment has taken a good step by aboJi-
shing CDS. The budgetary allocation in
respect of rural development NRLEP,
science and technology, electronics, forests
and animal husbandry is adequate. The
Government has shown its concern for the
welfare of schedUled caste and tribes by
allocating an amount of Rs. 207 crores.
Small scale industries have contributed
a great deal in rapid industrialisation. The
Govt. has increased the limit of capital
assets from Rs. 20 lakhs to Rs. 35 Jakhs.
This step will attract many new entcrpre-
neurs. It will also help in solving unemploy.
ment problem. In this connection I would
like to request tha t new industries
should be set up in backward areas only so
that it will generate employment potential
in rural areas. The Govt. should provide
financial assistance to sick industrial units.
The Govt's decisioLs to set up a Board for
this purpose is welcome.
The Govt's scheme to check tax evasion
is very effective. Tbe Govt. should set up
'special courts' for this purpose in consul-
tation with the State Govts.
I request tbe hone Minister to kindly
withdraw tbe hike in levy on cement and
paper. Farmers require cement for construc-
tion of wells, repairs etc. They should get it
at prescnt price only. The proposed increased
in the price of cooking gas should also be
withdrawn to give relief to housewives in
this country. The Govt. bas taken an impor-
tant step by abolishing licence fee for radio
and TV sets. Radio and TV is no longer a
luxury but essential commodities. From this
point of view, Govt's decision IS quite
welcome.
It has been announced in the budget
that TV services would be extended further
to benefit 70% of our population. The
Govt. is going to instaJ) 180 transmitters by
31st March 198' In variOuS pJaces in tho
country. I request that my constituency
Deed whicb bas been deprived of TV faci.
lities should be provided the same under
this programme. I have been makilll efforts
123 General Budget, 1.985-86- MARCH 23, 1985
General Discussion and
IShrimati Kesharbai Ksheersagar]
for the last two years for setting up of a
TV centre in Deed district. I request the hon.
Minister to fulfil tbis long standing demand
of the people of this area.
Hon. Prime Minister has assured that
at least one industry should be set up in
each district. I request that an industrial
unit should be set up in Beed district which
is very backward.
I have also been requesting for starting
a new railway line between Ahmednagar.
paroli for tbe last four years. I would like
to point out the progress of this area is
next to impossible in the absence of this
railway line. Therefore, I request that hone
Minister to approve the proposal of this
213 Kms. railway line to do justice to the
people of this area.
I would like to conclude by emphasis-
ing the need of setting uP a TV centre and
new railway line in Beed district. With
these words, I thank you for giving me
time to speak on the general budget which
I heartily support.
SHRI DHARAM PAL SINGH MALIK
(Soncpat): Mr. chairman, Sir, there are
no two opinions that the bon. Finance
Minister has prepared the Budget for 1985-86
keeping in view India's economic realities
and national objectives and this is an indica-
tion of the firm measures by our popular
Prim~ Minister, Shri Rajiv Gandhi for
takins the nation towards a new direction.
Not only Indian but foreign economists and
intellectuals have also admitted it. I con-
gratulate the hone Minister or Finance and
the Prime Minister for this. They deserve
not only my congratulations but those of
the entire people of the country also.
Before ] make some constructive criti-
cism of the Budget, J join the hone Mem-
bers of this august House in wishing that
this Budget may prove to be a great step
towards economic stability, development
and social and economic justice.
First of all, I would like to say some-
thing about the crop Insurance Scheme. I
consider this a courageous step' on the
part of the Government. India is predo-
minantly an agricultural country and even
Supplementary Demands lor 124
Grants (General) 1984.85
in Haryana State, 80 per cent of the peoplo
are poor farmers. The country whose
farmer is poor is bound to be poor. The
district has been made a unit in connection
with this Insurance Scheme. I would like
to say that this Scheme should he intro-
duced by treating the village as a unit,
because the entire wealth of the farmer is
at the mercy of nature, and natural cala-
mities, like bail~torms, droughts, etc. do
not affect IP only a district or a tehsil they
can affect even a single village. If they
cause loss in a single village, then that
village should be treated as a unit to give
it the benefit of the Insurance Scheme.
My second suggestion is that the prices
of agricultural commodities should be
determined, keeping in view their cost of
production so that the farmer gets incen tive
for producing more and gets remunerative
price to enable him repay his debts under
the burden of which he lives throughout.
For this purpose, arrangements should be
made to supply foodgrains to the Harijans
and tbe weaker sections by giving subsidy,
etc. to the consumers, so that the poor and
the weaker sections could get the cereals
at cheaper rates.
A provision should have been made in
this Budget to reduce the prices of small
tractors, tube-wells. etc. Haryana is a
State where the entire popUlation depends
on agriculture. Tbe size of the holdinas
have shrunk to sucb an extent that they
cannot purcbase bjg tractors. Therefore,
the price of agricultural implements, especi-
ally of small tractors" should be reduced.
With reg~rd to unemployment, I would
like to suggest that unemployed, persons
should be given unempJoyment allowance
and as long as the name of an upemployed
youth remains registered with the employ..
ment exchange, he should Dot be treated
as overage so that he might not Cace diffi-
culty in finding employment.
J would also like to suggest· that 'job..
oriented education' should be introduced.
The education system enunciated ~y Maca-
ulay, in ~ 0lue since i 88], should be scrap-
ped.
With 1he iBcrease in the prices of Cfiesel,
petrol and kerosene and 'with ·'the 'hike 'in
125 General Budget, 1985-86- CHAITRA 2, 1907 (SAKA) Supplementary Demandt;
General Discussion and
railway freights, the prices of essential
commodities would go up which would
affect the common man, Therefore, I want
the prices of these commodities to be
reduced.
At the same time, I would also like to
say that the elimination of the licence-permit
rule, would infuse honesty in the people and
it is quite essential to eC"~ 'rage honesty in
the people. I think, as long as black money
is not eliminated frol1l the country, this
country would not he strong. I think
even a child is conscious of dhhone~ty today.
You will be surprised to know that when
one day a teacher asked a question in the
class that "If 10 persons completed a work
in 10 days, bow long would it take for one
person to complete it?" a long stood up
and replied th<1t first he should be told
whether the work was Governmental or nOIl-
Governmental. So, I want to tell you in
this connection that raids are conducted on
the business houses but there is rampant
corruption among the Income tax officers
or other categories or Government employees
and therefore, raids should be conduct~d
on their premises also. I have firm COnvIc-
tion that as long as dishonesty is not rooted
out totally from this country, the country
would not become strong. With these
words , I support the Budget.
SHRI MOHO. AYUB KHAN (Jbun-
jhunu) : Hon. Chairman, Sir. this i~ my
maiden speech on the Budget in this augu~t
Parliament of my esteemed country. I have
been able to get elected to this House with
tbe blessings of our Prime Minister. Shri
Rajiv Gandhi, and with the trLlst ~eposed
in me hy the people of my constituency.
Mahatma Oandhi laid the foundation of
our sacred motherland, Pandit Jawaharlal
Nehru infused life into it, Smt. Indira
Gandhi laid down her life for it ~nd our
Prime- Minister, Shri Rajiv Gandhl, gave
the slogan of Carrying the country forward,
Keeping in view that slogan an~ sacrifice
and also keeping in view the Wishes and
aspirations of the beave people of my
motherland, our hon. Finance Minister has
repared this Budget. I want to extend my
~earty congratulations to the hon. ~inan~e
Minister and thank him for presentmg this
Budget.
It is a fact that a bjg responsibility has
1'6
for Grants (General) 1984·85
come on all of us. The people of the
country have reposed such a confidence in
us and an all-out effort has been made in
this Budget to live up to that confidence
and this is a thing of which we all proud.
There has been a tremendous increase in
our national income and resources. Our
f oodgrain production has increased from
1300 crore torneS in t 982.83 to 1500 crore
tonnes now. 1 Here bas been a growth of
13.6 per cent in Hgricu1ture. Similarly, indus-
trial product ion has also gone up conside..
rably. All this has become possible due
to the succes~ful efforts of our Government.
But, I want to point out that although
power generation has gone uP. yet the
situation rema ins unchanged so far as our
Rajasthan is' concerned. The area of
Jhunjhunu which 1 represent here, is pecu-
liar in that in this aroa blood is cheaper then
water. We should provide drinking water
to the people of this area. This is an area
where 100 per l'ent people join the Army.
Jf there are three males in a family, all of
them join the Army for the protection of
their motherland. I wiil just give an exam-
ple, 1 am an ex-servicemen. I had three
brothers all of whom were on the battle-
field du~ing thc 1971 war. This is such an
area were people pine for a drop of water
sinc\! Adam's time. In our area individuals
rUIl the Government and not the party.
] would request the hOll. Finance Minister,
through yOli. to make separate budgetary
allocation for this area. Such a provision
should be made for the farmers of that
area so that they can get secus, fertilizers
and agricultural iml11ements free of cost.
Thousands of acreS of land are lying uncul.
tivated in this area. The land of this area
is level but there is acute shortage of water.
Indira Gandhi canal passes through ow'
arca. If water is released in that canal, it
will reach our area and make our people
prosperolls.
Even today, 'Lakshman Rekha' i"s drawn
in our area. Before going to sleep, people
draw a line with ash and water in front
of their houses. In this area even today,
the people leave heaps of grains in their
threshing places after drawing a line with
ash and water in the evening and collect
it the next morning. This is an example of
the honesty truth and loyalty which exist
there even today.
127 General Budget, 1985-86- MARCH 23. 1985
General Discussion and
[Shri Mohd. Ayub Khan]
Keeping aU these things in view, 1 would
request the hon. Finance Minister to look
into the problems of that area. There is
no Government college, no I.T.I., no Sainik
School in that area though 100 per cent of
tbe people join tbe Army at one stage or
the other. brinking water and educational
facilities sbould be provided in that area.
People have not seen trains in that area.
If some train happen to pass through some
of the areas the people of that area request
that at least they must stop there. The
area an around my constituency is represen-
ted by Ministers and tha t is why big pro-
jects are taken up in those areas. 1 would
give an example of Loharu Junction which
is in Haryana. Half of it is in Haryana
and half of it fans within my constituency.
you would be surprised to know that the
area that lies in Haryana Jooks bright like
broad day light while the other half that
is in my constituency remains engulfed by
the darkness of tbe night. I would, there-
fore request you to pay attention to my
area.
Lastly, as a soldier I would request you
to make arrangements to impart mechanical
training to the Army officers and jawans
for their welfare. Pensioners have to wait
even up to Six months to get their pension.
Keeping in view the soaring prices, provi-
sion should be made for timely payment of
pension every month to these people so
that they do not have to face difficulties.
A T.V. station should be opened in my
area to enable the people there to benefit
there by.
You have given conces5j(ln in Income-
tax. Many rich people of my area are
carrying on trade and business in other
parts of the country. They have monopoly
in many fields in the country but they do
not set up even a single factory in our area.
If the Government issues them a licence
for any factory, it should be for setting it
up in our area.
With these words, J welcome this
Budget.
[English]
SHRI S.8. SIDNAL (Belgaum) : Sir, I
tbank you for affordins me an opportunity,
Supplementary Demands for 128
Grants (G~~ra/) 1984-85
to express my feeling on this Budget. Sir, I
rise to support the Budget presented by our
hone Finance Minister. I firstly congratulate
the Prime Minister and the Finance Minis-
ter on having placed a growth-oriented
Budget for this country. Unusually, the
opposition people on that side are having
a high sense of appreciation I really thank
them for their appreciation. But at the same
time they have criticised that it is a capital
oriented Budget and rich-oriented Budget.
Sir, I beg to differ with them. It is because,
the concessions shown and tbe incentives
given for development definitely show that
it is a growth-oriented Budget and job-
oriented Budget and it would generate mOre
employment opportunities.
I would like to bring to the notice of
this House that this Budget has really given
a new direction to this country. So far,
we had programmes for the poor, They are
still intact like IRDP and NREP. We have
gone a little ahead to give incentives to the
youth of this country. A lot of concessions
bave been given.
In the field of agriculture, I really
congratulate the Minister on having spon-
sored the scheme of crop insurance. But I
really differ with the Minister because it
will cover only a few items. It should cover
all the other items such as sugarcane, cotton
and other commercial croPS. I do not know
why a partial scheme has been introduced
wh~reas a full investment has to be made
by the agriculturists. I request the Finance
Minister to COver aU these crops in the
interest of agriculture. Agriculture is one
of the best industries. Unless the agriculture
is developed technically. we cannot expect
our industry to develop. To develop aari-
culture, we have made a lot of efforts for
providing irrigation. But we have not pro.
vided the technical know-bow to the agricul-
ture to make best use of water. We have
not made available to them the best techni-
ques. We have not taugbt them bow to use
technically tbe latest production of hybrid
and other quality seeds. Now, the lands
bave become the laboratories of the country.
Unless the farmer becom~ a SCientist, we
cannot develop agriculture in the country.
Agriculture is the, raw material for the pro.
duction of finisbed goot!s in tbe industry.
Therefore, all over the country, we have to
provide concession in the priCCI or tools and
 229 General Budget, 1981.86- CHAITRA 2. 1907 (SAKA) Suppl,m,,,tary Demands 130
General Discussion and
implements used (or agricultural purposes.
The tractor is available at a very high cost.
We have gone (or land reforms by which
fragments have been created. Firstly, frag-
ments are created by population. Secondly,
fragments have been created by Jaw. So,
we have too many fragments. But we would
like to improve the productivity. Without
the employment of mechanical farming and
scientific techniques. we cannot expect to
increase the production. When we want to
employ the mechanism, large holdings are
required. Unless we go for cooperative
farming or the cost of production of tractor
is made cheaper or any other input is made
available to the poor, we cannot expect a
larger production in agriculture. Therefore,
my appeal to the Minister is that the prices
of tractors, pump sets and machines which
are required for the production of agriculture
should be reduced. Else, they should be
made free from the taxes. Only then, we
can expect some production.
MR. CHAIRMAN: (Shri Vakkon
Purul_i;hothaman) : The hon. Member's time
is up.
SHRI S.B. SIDNAL : I have just begun.
I don't know how your watch is running
fast.
MR. CHAIR MAN : It is not my watch.
You please conclude.
SHRI S.B. SIDNAL: In the field of
education, we have promised to revamp the
total education. So far, we had an education
ror producing only clerks as conceived by
the British, With all that, we have been
doing very well 'as far as the technical
education is concerned.
But we have not done much in giving
proper education to the rural folk where
it is a stagnant society. When tbere is a
stagnant society, we cannot expect a better
economy. We have to give a momentum to
a stagnant society, that is, the rural areas
where only the agriculturist class Jives. We
have not J)rovided proper education tbere~
We have to live education in dairy, poultry~
horticulture and asriculture and give diplo-
mas in eacb viJIalQjt81uk, wblatever it may
be. Unless we give them riailit educatioD.
we cannot expect right prodtIA ction. Proper
"C
education to ~",i(:u1turists i~ ~ry imponan\
lor Grants (Genera/)1984-85
nowadays for the simple reaSOD that 'they
have to go in for allied agro-industries. like
dairy farming, poultry, etc. Which are
supporting the main agricultural production.
As we have given a lot of concessions and
incentives to the industry, for the urban
folk, equally we have to give concessions
and incentives to the agriculture. for the
rural folk. Then only we can have all round
development in the country. Therefore, I
would appeal to the Finane';! Minister to
give concessions for agriculture.oriented
instruments and also for the inputs like
diesel, pump sets, etc. Otherwise, we will
not get agricultural production according to
our expectations.
Coming to inflation, it is caused by
several factors. It is always a sign or a
phenomenon of an under.developed country
and under-developed economy. It cannot be
independent of that. It is also an interna-
tional phenomenon, We have to share it
as it comes. But whenever inflation is there,
the production has to be boosted UP. I
suggest that we should forego all holidays,
except Sundays, and work hard to boost
up the production which will cut inflation
also.
About the black money, there are many
things done in Japan. For example, suppo-
sing 'X' has got a crore of rupees black
money, he has to deposit it in a locker and
one-half or one.fourth is circulated as white
money for constructive purposes. That is
what is done in Japan. Here also, some-
thing has to be done to dig out the black
money which bas already been there. As
my hon. friend from your State, Sic, sugges ..
ted the housing schemes should be started
bec~use these scheme') generate jobs and
employment for the poor people.
As regards NREP and IRDP, these
programmes are doing well and we have
heen involving tbe people in the economic
progress of the country. Tbese programmes
have also created assets in their own way.
These should be continued and more funds
should be provided for the same.
There should be more plantation of trees
and horticulture should be given more
importance.
With these words, I conclude.
131 Ge'Mral Budget. 1985-86-
Ge,.,al Dilcusslon and
SHRI V. SOBHANADREESWARA
RA·O (Vijayawada): Mr. Chairman, Sir, I
thank you very much for giving me an
opportunity to speak on the General Budget.
I will take only a little time.
I would like to bring some points to the
notice of tbe Finance Minister. The defici t
financing resorted to in this year'"s Budget
is massive. In fact, it is the highest. Never
before such a massive dose of deficit finan-
cing has been resorted to, In fact, last year,
they projected a deficit of Rs. 1773 croreS
while they ended up with Rs. 3985 crores,
But because of favourable crops and favou ..
rable monsoons, it did not show an adverse
effect. All tbe same, we cannot expect the
same, this year. I would request the Govern-
ment to be cautious on this occasion and sec
that unproductive expenditure is kept to
tbe minimum in order to contain infJation.
Several concessions have been given to
industrial ists.
The bon. Minister has taken great
pains to explain the objective of giving such
concessions to big industrialists. Let us see
how far the Government will achieve this
objective.
Barlier, if a firm, company or trust spent
some money (or rural development, it was
exempted from income tax under Sec. 33 CC.
This provision was withdrawn later.
I request the hon. Minister kindly to
re-introduce it and give this concession.
A company which is at a remote place may
not like to give that amount to the Prime
Minister'S Fund. In fact, they will be pre-
pared to spend that money on roads, buil-
dings, schools and colleges in the areas
where its activities are confined to. I request
the hone Minister kindly to examine this
aspect. The hone Minister has got a commit-
ment to the cause of the poor and he spoke
with all his heart on tbis aspect of the
matter.
OD cigarettes, Government is getting
nearly Rs. 1,950 crores by way of excise ,presented, which has ushered in an era of
duties. For every pack of cigarette sold for silent econonlic revolution in the country.
Rs. 2/-, an amount of Rs. 1.45 is coming This Budget has proved this is not ,merely
_t_o_i-:tS=c_o_f_fe_r_s_.:-T_h_a_t_w_a_y_,_the
__G_o_v_er_n_m_e_n_t__a_s_:t__a..:.:te:._m:._e:n:_t of account of revenue and
.n-o speech was ,?ri~inally dc1iv"~d in Ta~i],
MARCH 23, 1985 Supplementary Demands lor 132
Grants (General) 1984·85
is getting Rs. 9,5S0 crores. The Government
is getting several crores of rupees on several
other items. It is the duty of Government
to provide food and cloth to the people.
Our State Government is spending more
than what the Central Government is giVIng
to help the poor in our State. But, the
leaders of the Congress party are critiCising
the Telugu Desam party during the elections
and even after the eJections, for giving rice
at Rs. 2/.. per kg to poor p~ople and for
giving subsidised cloth. I want to bring this
fact to the notice of the hon. Minister.
Unless the priorities of the plan are
changed, no appreciable change in the poor
condition of the people will take place in
our country. Even now, agriculture is a
means of livelihood for 720h) people and it
contributes 46% to gross national product.
The plan allocation for it is less than 25 %.
In contract to this, only 9 % of the people
depend for their livelihood on big, medium
and large industries which contribute only
15% to gross national product and yet more
25 'J'o of the Budget is allocated to them.
In spite of the natlonalisation of banks..
even today (according to the latest figures
available for June, 1983,~ the banks are
giving only Rs. 5,356 crores to agricultural
sector whereas the banks are giving Rs. 13
crores to the industrial sector.
I therefore request the hon. Minister
tbat topmost priority should be given to '
agriculture and building of rural roads and
to house bui'lding aativity which wil1 provide
more employment to millions of unemployed
and under-employed people. I request tbe
hone Minister to change the policy of the Go..
vernment accordingly f
[TranslationJ
·SHRI C.K. KUPPUSWAMY (Coim-
batore) : Mr. Chairman, Sir, I rise to say
a few words on the 1985-86 General Budget.
It is really a matter of gratification that 38
years after independence a Budget bas been
133 G'Ml'a/ Budgtt, 1985-86- CHAITRA 2, 1907 (SAKA) SuppteIMntary
G~neral Discussion and
expenditure of the Central Government. It
has proved tha t the Budget can be the
beacon light for ensuring people's welfare.
I wholeheartedly welcome this Budget.
The hon. Finance Minister has proposed
a Board of Rehabilitation for the sick
industries in tbe country. My Constituency.
Coimbatore, has more than 100 textile mills.
Several of them are lying closed for many
months. Particularly, Shri Hari Mills,
Vasantha Mills, Janardhana Mills are out
of operation for several months. The
workers of these mills are struggling between
life and death. The Government must
nationalise these Mills and entrust them to
National Textile Corporation. They must be
reopened, so that the workers get their jobs
back. SimiJarly, for the past six months the
Tiruppur Cotton Mills is closed and the
workers are on the street. The Government
must endeavour to fe-o·pen this Mill.
The town of Tiruppur, in which J live,
is known for the hosiery industry not only
throughout India but in many parts of the
world. There are many hosiery manufactur-
ing units. The central excise is levied on
the printed cardboard boxes meant for pack-
ing, if the value exceeds Rs. 7.5 lakhs.
Previously this ceiling was Rs. 30 lakhs. I
suggest that the ceiling of Rs. 30 lakhs
should be restored for central excise pur-
poses so far as printed cardboard boxes are
concerned. ; implemented. I want tbat tbe hon. Finance
Sir, I demand that the recognition to
Peerless General Finance and Insurance
Company, which has headquarters in
Calcutta and many branches all over the
country, because this Company is cheating
the public everywhere. This Company
publicies like L.I.C. and the people are taken
in. They think that it is another L.I.C. The
L.I.C. is losing business and the people are
losing their money. The Company is
amassing money. I want that the Finance
Minister should enquire into the affairs of
this Company and save the common people.
Similarly, the Government should also
enquire into the working of Investment
Companies which are also exploiting the
innocence or the people. I am happy that
the hone Finance Minister has announced
an inquiry tin the affairs of private compa-
nies whic~ '.. are running lotteries. Similar
inquiries should be ordered for Peerless
DemaNb 134
/01' Grant' (GeMl'QJ) 1984.85
Company and also for Investment cclm.
panies.
Under Prime Minister Indira GandlU '.
20 Point Programme the. District Industries
Centre is entertaining applications from
edUcated unemployed for setting up Unit•.
Liberally the D.I.C. recommends loan appli-
cations to public sector banks. But the
Banks reject in to several applications. The
Banks are also delaying the applications. The
recommended loan is not sanctioned. The
D.I. C. should recommend only deserving
cases and must ensure that tbe loans are
sanctioned by tbe Banks. The Banks should
not refuse the loan applications recommen-
ded by the D.I.C.
Last year some restriction was imposed
on the import of smaJl generators. Now,
the paucity of electric power is widely prc-
valent in Tamil Nadu. The small industries
are afflicted for want of electricity. I demand
tbat the import of quality generators from
Japan, Taiwan and such other countries
should be allowed liberally this year. The
import licences should be given freely.
The Octroi is the biggest bottleneck in
the transport economy of the nation. Our
late Prime Minister ensured that a uniani-
mous resolution was adopted by the
National Development Council for the aboli-
tion of octroi. That has not yet been
Minister must abolish the octroi and suit-
ably compensate the States. A Committee
was constituted under the cbairmansbip of
our Party's Working President. Pandit
Kamalapati Tripathi for studying tbe ques-
tion of abolishing sales tax. That Committee
bas submitted its report. The Government
must implement the recommendations of
tbis Committee.
In order to ensure rural development,
our former Prime Minister Mrs. Indira
Gandhi directed the opening of regional
rural banks. According to tbe directives of
Reserve Bank of India, tbe branches of
Commercial Banks' sbould not be opened in
rural areas. But the State Governments
prefer tbem. This has resulted in harassment
to rural people because the commercial
banks want guarantee, land document etc
for sanctioning the loan. Where will the poo;.
people go for such suara.D~'? Only the
 t1s ae~ral Budget, 1985-86- MARCH 23. 1985
(h",ra/ Di4Cu,ulon and
[Shrl C.K. Kuppuswamy]
Regional Rural Banks will help the farmers.
Hence I demand tbat only Regional Rural
Banks should be opened in rural areas, Out
0' 450 districts 286 districts bave been
covered by 162 Regional Rural Banks. This
is according to the RBI's Annual Report. I
want that all tbe districts should be covered
by Regional Rural Banks.
Sir. 463 large industrial units, which
have the credlt facility of more than a crore
of rUPees. owe to the Banks as on 30.6.1983
a massive sum of Rs. 1913 crores. They are
all located in and around metropolis towns.
Recently. the newspapers have highlighted
the sanction of loan of Rs. 300 crores to onc
businessman named Shri Sethia by the
Punjab National Bank and Central Banks.
Shri Sethia bas been arrested in India for
his failure to pay back the money. If such
massive financial assistance is extended to
rural areas, then the entire country will be
benefitted.
Before I conclude, I would refer to the
non-spending of 50% of Rs. 325 crores
approved by the Government for loa.ns to
be given by the Banks under tbe scheme for
providing self.employment to the educated
unemployed. When there are 2 crores of
oducated youngsters, wbo are registered on
the Bmployment Exchanges, are seeking
livelihood, it is gross negligence on the part
of baaks io not helping the successful imple-
mentation of this scheme. I want that the
hoD. Finance Minister sl10uld look into this
and take appropriate action.
There is recurring power cuts during
.summer season in Tamil Nadu This has
affected the industrial growth of the State.
DUring the regime of late Shri Kamaraj,
the Hogenakal Thermal Power Project was
proposed. Still it bas Dot been approved by
tbe Centre. Similarly, Pandyar .. Punnampuzha
pOwer project near Coimbatorc is also pend.
Ing approval of the Central Governmeots.
These two power projects, along with aU
otber power projects wbich have been
recommended by the State Government of
T_il Nadu should be app.oved by tbe
CeaUal Government.
W,it1:~ these words I concJude my speech.
.Tae speecb was orlainally doliverocl in Tamil,
Supplementary Demands/or 1~6
Grants (General) 1984.8S
*SHRI R. JEEVARATHINAM (Ara.
kkonam): Mr. Chairman. Sir, 1 thank you
very much for giving me this opportunity
to say a few words on 1985.86 General
BUdget. I whoieheartedIly welcome this
Budget. For the first time 38 years after
Indepe~den~, this kind of Budget giving
new directIOns to our economic policy has
been presented. Under the dynamic leader-
ship of OUf young and ebullient Prime
~inister Shri Rajiv Gandbi, our bon.
F~nance Minister, Shrj Viswanath Pratap
SIDBh • has presented this Budget, Which is
heralding a new era of economic think ing.
The Crop Insurance Scheme has been
the Jong-standing demand of the farming
community of our country. It has been
introduced in this year's Budget. The entire
agricultural community has welcomed the
Crop Insurance Scheme. I extend my full
Support to this scheme. Without wasting the
valuable time of the House, I would in
brief refer to certain issues whicb deserve
tbe favourable consideration of the Finance
Minister.
The hon. Finance Minister has stated
that the compulsory deposit money would
be repaid only in 1986-87. I suggest that he
should pay 50% of CDS money in 1985-86
an~ the remainina 50% in 1986-87. I would
also str~ss the need, in the interest of higher
productiOn of cement, for abolishing the
dual policy in ~ement. The levy cement and
the non-levy cement arrangement should be
don~ away. This is hampering higher pro-
ducllOn. You total the two prices and strike
?ut an average price for the cement. This
IS very necessary for the building industry
and for construction programmes. This
should be done by the Finance Minister.
Salem Steel Plant should be expanded
and more funds Should be allocated for this
purpose by the Finance Minister. I would
no~. draw the attention or
the bon. Finance
M~nlster. that the private s~ctor banks and
private mvestment companies are offering
~5% interest, in some cases even higher
tnterest, on deposits. Naturally tbe people
put their money in them. Tho Stale Bank
and other pu bUc sector banks give only
4% to 10% on varying amounts. In order
to attract depOSits, the State Bank and other
131 G'MraJ /Judg,t, 1985-86 - CHAITRA 2, 1907 (SAKA) $upplemtJtitary D,malllls
Gm,ral Dilcu$llon and
public sector Banks should increase the
interest rate. Tbe interest rate should be
6% to 120/ 0 on varying amounts. The bon.
Minister of Finance will then be able to
mop up larger savings in the form of depo-
sits.
Under the 20-point programme, I suggest
that the applicants for loans should be told
whether they will get the loan or oot. TheY
should not be kept io suspense. They are
not able to attend to any other work
because of this. They must be told 'yes' or
'no' at the earliest. The State Bank and
public sector banks should give loans at low
rate of interest to Doctors, Engineers, law-
yers and merchants for the purchase of cars.
The District Industries Centres are
recommending loans to the public sector
banks, along with a feasibility report of the
applicant enterpreneur. Presently, there is
a ceiling for recommending such Joans. I
SUggest that this ceiling should be enhanced
to Rs. 2 lakhs, so that the applicants do not
run from pillar to post for getting additional
funds. They should be enabled to have the
funds required for .the project at one place.
This will help the establishment of industries
in rural areas also.
As the quali ty of ~ement produced by
Mini-Cement units is declining, I suggest
hereafter no licence should be given for
opening mini-cement units.
In Tamil Nadu handloom cloth worth
several croreS of rupees is stagnant. The
handloom weavers are in distress. The
Government must organise exhibitions out-
side tbe country and explore new markets
for tbe handloom cloth. All avenues for
export fllust be fuHy exploited for ensuring
the disposal of stagnant handloom cloth.
The Trade Development Authority's func-
tioning must be revamped so that new export
markets are located by this organisation.
On the road from Arakkonam to Walaja
5000 acres of land is available. This land is
nearer to SoJingapuram Railway Station.
Here the Central Government must Set up
a cement factory. In Tamil Nadu already
tbere is cut in electric ~upply to the farmers.
The summer bas just set in. During peak
summer. the electricity cot goes to 60 CJ'0 ot
the required supply. The agriculture comes
118
lor Grantl (G,,,.,aJ) 1984.85
to standstill throughout Tamil Nadu. Bvery
year this is recurring. I demand that a
super Thermal Plant should be set up in
Tamil Nadu in the interest of agriculture in
tbe State.
With these few words, I conclude my
speech.
[English)
THE MINISTER OF STATE IN THB
MINISTRY OF PARLIAMENTARY
AFFAIRS (SHRI GHULAM NABI AZAD):
Sir, I propose that the time of the House
may be extended by one hour.
MR. CHAIRMAN: Does the House
agree to it ?
SOME HON. MEMBERS: Yes.
MR. CHAIRMAN: So, time is extended
by one hour.
[Translation]
SHRI MADAN PANDEY (Gorakbpur) :
Mr. Chairman, Sir, I would like to con-
gratulate the hone Finance Minister, 00
behalf of 'INTUC', tbe workers' union
which I represent, for presenting this Bud-
get. The Finance Minister has paid atten-
tion this time towards that class of workers
whose interests had never been kept in view
so far. The limit of salary (or the payment
of bonus has been raised from Rs. 750 to
Rs. 1600: The limit of gratuity has been
raised from Rs. 36,000 to Rs. 50,000. For
the concession given in the rate of interest
on housing loans, the working class not
only congratulates you, but tbey feel obU.ed
. also.
Now I would like to say a few words
to the Opposition Members, through, you.
Shri Janardhana Poojary has rep) ied to their
arguments in a logical way. If we want,
to give relief to workers. if we want to
bring about industrialization of the cCtuntry
and create a conducive environment therefor.
if crops are to be insured aDd the country
is to be taken ahead on the path of prG-
gress and development, then how else would
resources would be mobilised except by
taking recourse to taxation? Government
shall have to mobilise these resources. There
are three alteroatives beforo UI : eicber tbo
 j ~9 Generai /Judget, J9~5.86- MAR.CH 2~, 1985
G'Mral Discussion tmd
, [Shrl Madan Pantky)
schemes have to be slashed down or loans
have to be taken trom foreign countries or
taxation has to be resorted to, to collect
more revenue. There is another wa) also
which even to Janata Government bad
adopted and that is to sell the gold which
our mothers and sisters bad spared for the
country and tbus mobilise resources. But
the last source bas already been exhausted.
Without taxation, therefore, we would not
be able to fulfil our needs.
Mr. Chairman, Sir, I come from that
area about which Shri Gehmari had once
raised his voice in this House. There are
in all 14 such districts like Gorakhpur,
Ballia, Deoria, Banaras, Jaunpur , Azamgarh,
Basti Gonda and Faizabad whiCh are most
back;"ard. The 'Patel Commission' was
constituted when Shri Gehmari insisted on it
and that Commission made recommenda-
tions to the Government. At the moment,
the representative of Gazipur is sitting here,
I am representing Gorakhpur and the re·
presentative of Azamgarh is also bere, but
we find that in spite of all the recommen-
dations of the Patel Commission, nothing
bas been done till date to improve or change
the picture of these areas. A leader like
Ashok Mehta had raised this matter but in
vain.
I would request the hon. Finance
Minister, wbo knows tbat area, to constitute
an Eastern Uttar Pradesh Development
Board on the lines of the Development
Board for hilly regions and that existing for
Bundelkhand and efforts should be made
to provide rciief to the suffering people of
that area.
I would like to teU him, through you.
that if an aerial aurvey of the area is under-
taken during the rainy season, you would
find that whereas rivers like the Ghaghra,
the !tapti and the Ganga have proved to
be • boon for the upper reaches of the
State they turn furious at Mirzapur a~d
finally cause havoc in the districts of Bailla,
Gazipur. Banaeas, Azamgarh and Gorakh-
pur. At the time of floods, tbe whole of
this area virtually looks like an ocean. The
pUaht of the people livins in the vi1l~ges
between the embankment and the rlVer
duriDI the rainy season can be imaained. .
Supplementary Demands IQr 140
Grants (General) 1984-85
There arc no mean. left for them to go to
and fro and no place to ease oneself even.
I think because these places are inaccesible,
our leaders do not visit them and even the
Ministers do not go there as the bureaucrats
do not take them along. I take this oppor-
tunity to draw the attention of the hOD.
Finance Minister to the conditions of this
area.
The problem of floods is related to
Nepal. Uttar Pradesh Government cannot
be depended upon. The Malu Dam Project
can taken up with the co-operation of
Nepal. Similarly, co-operation of Nepal
in the river valley Schemes of Ghaghra and
others is necessary. You should remember
what Shri Gehmari had said. It is very
difficult to explain the plight of the people
in that area in such a short time. All this
has been due to lack of resourCeS and even
after 40 years of Independence, such is the
plight of the people there. You cannot leave
tbe people at the mercy of nature. You
should provide the resources and try to
improve the lot of the people there. I
would like that while replying to the debate,
tbe hone Minister should reply to these
points also.
I hope that tbe request for tbe constitu-
tion of Eastern District Development Board
would be acceded to, so that the suffering
people of the area could get the much-
needed relief.
With these words, I congratulate tbe
bon. Finance Minister for presenting a
balanced BUdget and I feel obliged to the
leader of the new Government, Sbri Rajiv
Gandhi, for creating a spirit of modernisa.
tion in this Budget.
SHRIMATI SUNDARWATI NAWAL
PRABHAKAR (Karol Bagh) : Mr. Chair-
man" Sir, I am grateful to you for havina
allowed me to make my maiden speach.
I support the Budget presented by the
Finance Minister because equal treatment
has been meted out in it to all sections of
tbe society, whether it is capitalists, middle
class people, farmers of workers.
At the out set, I would like to say that
on the one hand some Members from the
'Opposition have appreciated the Budpt
and on the other hand some others havo 4
 141 General Budg~t, 1985-86- CHAITRA 2, 1901 (SAKA) Supplementary D,1fItIIUb 142
General DllClUllon and
opposed it. I would like to ask them what
they had' done for the poor and the farmers
in 1977 when they were in power. Today,
they are showing great sympathy for the
poor and the farmers. When our dear
1eader late Smt. Indira Gandhi had nationali-
sed the banks and had abolished the privy
purses of the former rulers, they had oppo..
sed tbese steps. They are now speaking in
favour of farmers, but what had they done
for them when there was a bumper crop or
sugarcane and they had turned down their
demands? Tbe farmers were at that time
compelled to burn their standing crops.
Today', the Opposition Members are shedd-
ing crocodile tears for the farmers. I under-
stand that the land allotted to the poor
and the farmers during Illdiraji's regime
had been taken away from them during the
Janata Party's regime. Today, they -have
the temperity to ask what has been done in
our regime. The opposition parties arc
in the habit of just criticising for the sake
of criticism.
18.00 brs.
Mr. Chairman, Sir, now I would like
to express my views on the Budget. Various
,chemes arc in the process of implemcn ta-
'tlon under the Ministry of Social and
Women's Welfare for which a provision of
Rs. 29,78,35,000 has been made in 1985.86
in the non-plan sector and a provision of
Rs. 100 crores has been made under the
plan sector.
There are many developmental schemes
under the Social Welfare Programme, under
which there is a scheme to provide equip-
ments to handicapped persons free of cost.
Under this Scheme, persons having a monthly
income between Rs. 750 and Rs. 1500 will
be provided with equipments free of cost.
But no provision has been made for those
whose monthly income is less than Rs, 750,
when they need the assistance the most.
It seems that the poor have been deprived
of this assistance. The people living in
slums do not come to know about such a
scheme. A survey should be conducted in
these localities to identify the problems
faced by the handicapped persons so that
remedial steps could be. taken.
Mr. Chairman, Sirt the schemes meant
for the wclfN'e Qf women come under *he
for Grants (O,nera/) 1984-81
Social and Harijan Welfare BfJ8rd. Morc
funds should be provided to them. The
funds being given by the Departments are
negligible. The destitute widows are given
Rs. 300 per year. This amount is quite
inadequate, An amount of Rs. SO Or 60
is given as pension. I would like to say
that they should be provided with as much
amount as possible. Training centres should
be set up for women to provjde occupational
training and employment to them So that
they could bring up their children. There
is nobody to take care of the children of
a number of widows. I would like to say
that morc and more such centres sbould
be set up in slum areas.
Similar1y, mostly middle class people
take the benefit of the socia-economic prO-
grammes, whereas the poor people are
really the needy people. This scheme should
be given more and more publicity in the
localities where the lower income group
people live because they are not in a position
to bring up their children.
Mr. Chairman. Sir, poor families could
not so far get the requisite benefit in res-
pect of the nutritious food, prevention of
disease, medical check. up, consultancy
services and pre-school education progra.
mmes introduced under the Integrated Child
Development Programme, The money aHo-
tted for giving nutritious food per child i.
too inadequate to serve tbe purpose. Per
child more provision should be made ror
this purpose.
Pre-scbool education centres are gencraJJy
opened in colonies where middJe cJass people
live. The children of poor families are thus
deprived of this facility. Children of those
women, who work on roads or who arc
engaged in building construction work are
seen moving about like orphans. You should
ensure that their children are looked artor
properly. Maximum reSOurces sbould be
mobilised for them so that their children let
education.
Today our population is increasing.
Poor people come to cities for earning thefr
livelihood and as a result thereof the number
of slums is increasing. Some arrangements
should be made so that tbey get such facili.
ties. Neither drinking water nor electrJclty
is a~ilable to them. These facilities ,-..f
143 a..,al Batl"t 1985-86- MARCH 23, 19!5
Gen"a! Discussion and
l Slwlmatl Sunduwatl Naval Prabhakm1
be provided to them. Some arrangements
should be made to see that they get employ-
ment at their native places so that they may
not feel the ntcessity of coming over to
cities. With these words, I thank you for
siving me five minutes' time to speak.
PROF. SAIFUDDIN SOZ (Baramulla) :
Mr. Deputy Speaker, Sir, I will not go into
details. When I spoke earlier, Shri Janar 4
dbana Poojary was sitting here. He did not
oven reply to my pOint. But, now I want an
assurance whether tbe points I raise here
would be considered or not.
One Member said that Parliament had
become irrelevant. Anger was expressed by
saying that while giving interview, I had
described the Budget as a good one. I again
say that it is a good Budget. you may feel
that I am emboldened to say so because
palkhiwala bas described the Budget as a
lood one. When Shri Vishwaoath Pratup
Singh was making the Budget speech, I did
ror~ the impression that it was a good
Budget.
The Finance Minister had said that now
crops would be insured. It is a good step.
I totally agree with him. Wben the crop is
ready- to be harvested, if there arc rains or
severe storms, nobody can imaaine tbe
pUsht of the farmer. Now, the farmer need
have no such a,prehension any more and he
will work hard. If his crop is damaged, he
can still hope that he will not be ruined. By
this Scheme, be will get some psychological
relief also.
Social security measures have been taken
up in this Budget for those poor people who
are killed in accidents. A leaislation should
~ brouaht for such areas also where some
sick units are there or where some factories
are lying closed.
I shall say somethins about education
only when tbe Education Minister is present
hero. Education is a matter of vital impor-
taoce. Neither has any attention been paid
to it Dor any priority liven. The Finance
Min.l$ter has said for the first time that
edijcatlo"_ will be liven top priority. Whether
qr
iti:s 4~.: not, it will h~ve ~ be ~.
but tbe intention SCOlD. to be thor~.:P,
Suppl,,,,,ntll1'1 IRma". /0.' 144
Grants (GeMra/) 1984·85
intends to apprehend tax-evaders also. A
large number of Members have supported
these five or sht points to please the Minister.
These are very good things.
I would like to say two or three things
more. Poojaryji is our colleague and friend.
I would request him that after holding
consultations agaiu in the Ministry he should
not try to put off things as has been
happening hither to fore. Attention must be
paid towards two or three things and some
relief must be given. For example, you have
not imposed more taxes, but people are
facing great difficulty due to an indirect tax,
more so in my State. The price of petro)
has increased by 90 paise per litre. It has
increased very much in Srinagar. There is
great difficulty of transportation in our
State. You have raised the price of kerosene
oil by 40 paise in one stretch. The Price of
petrol may be raised because there is no
other alternative, but I request that the
increase effected in the price of petroleum
may be reduced by 50 per cent. The price
of kerosene may be increased by 10 paise
only, as it is used by the common man.
You have' given the slogan of removing
poverty and you have taken certain measures
in tbis respect in the Budget. When you
give the slogan of removing poverty-some
of our friends get excited over it and say
that we do not want to remove poverty-
the increase of 10 paise in the price of
kerosene will be adequate. The price of
cooking gas has been increased by Rs. 6.
There is no home delivery system in Srinagar
and certa in other cities. I had told Shri
Shiv Shankar that there was no home
delivery system in Sri nagar and other cities
of Kashmir. One has to go to the agent's
godown to colJect the gas cylinder and bas
to pay more also. So, the increase in
Srinagar, BaramulJa and other far off places
would be Rs. 10 instead of Rs. 6, Gas has
become one of necessities of life. Bven
poor people want to use it by curtailing
other necessities of lire. It has become an
item or common consumption. Hence, I
would like to say that the increase of Rs. 6
on a cooking gas cylinder is not justified.
This is a very lood Budaet. Even Nani
PalkhiwaJa has described it as a good
Budget .and: a Jot of discussion has taken
place on U. I bave been a student of ccono.
14S Gentra/ Budget} 1985-86- CHAITRA 2, 1907 (SAKA) Supplementary Demandl 144
General Discussion and
mics myself. You know that the common
man's budget will get upset by the increase
in the prices of petroleum, kerosene, gas
and five or six other. items. So, the hon.
Minister should consider it. This is not a
question of prestige ... ... (Interruptions) ... 1
am concluding shortly.
If you see the alabs of income tax, you
will find that one category is not going to
benefit by the proposed exemption. I had
already said in an interview that the exemp-
tion limit should be fixed at Rs. 25,000.
instead of Rs. 18,000 and, if it is not possi-
ble to do so it may be fixed at Rs. 20,000.
Those who pr~pare the Budget have their
favourites in mind while giving concessions.
You please look· at the second scale of
income tax. The people in that scale do n01
get any benefit. Regarding retirement bene-
fits, you have said that they would be given
from the next Financial Year. What about
those employees who retired in January
1985 ? The Finance Ministry may not agree
with it, but can a way not be found out
whereby messengers, clerks or other low
paid employees also can gel benefits? They
know that handsome concessions are being
given from 1st April and the high officials
are to get many more concessions. Such
Jow-paid employees as retired between
January and April, 1985 will resent it that
they have been deprived of the benefits. So,
they should be given the retirement benefits
from January 1985,
SARI RAM SAMUJHAWAN (Saidpur):
Mr. Chairman. Sir, the hon. Finance
Minister and the hon. Prime Minister deserve
full appreciation for the Budget for 1985·86
presented in the House, because the all-
round progress of the country has been kept
in view in the Budget. Enough funds have
been provided in it for Crop Insurance
Scheme, employment and for other schemes
Uke N.R.B.P. In one hundred districts, the
dependents of those killed in aCCidents will
be given Rs. 3,000. I would urge upon the
Government to extend this scheme to the
entire country.
Similarly, food subsidy has been increa-
sed from Rs. 800 crores to Rs. 1,500 crores.
This step will have a good effect on the
production of wheal and paddy. A tong .with
ft, I want to say that 80 per ceo t of our
peOple live W. vma~cs and ar~ ~,. pend en t 0 Q
for GrQ1f1S (General) J984~85
agriculture. There is qoed to brin, down
the prices of items like seeds, manures,
medicines and other commodities which are
used by tbem. There is need to supp1y the
maximum electricity to the farmers. Today
the situation in respect of electricity is such
that it goes off within two minutes of its
commissioning. The farmers go to their.
fields but are unable to irrigate them. Elec-
tricity is supplied during the night, with the
result that there remains the possibility of
the farmer falling ill. I want that the farmers
should be supplied with maximum electrl.
city. Similarly, regarding the provision of
electricity in the Harijan colonies, I have
seen in my constituency that the people arc
inrormed that such and such Harijan colony
has been provided with electricity but there
is no light in sight. The reason is that
the employees are careless. I think special
attention should be paid towards it,
Mr. Chairman, Sir, my constituency
also falls in the eastern part of Uttar
Pradesh. As Shri Rat who spoke before me
said, the districts in the Eastern region are
quite backward and away to their being
densely populated and having less land, the
poor people o( that region leave their bomes
for taking uP johs in other places Ji,lce
Calcutta, Madras, Bombay, Delhi to earn
their livelihood, It is absolutely necessary
that big industries be set up in the rtgion
of Gorakbpur, Basti, Ghazipur. }aunpur,
BaHia, etc., for the benefit Of. the po~r
people. There is no big or small mdustry In
our area. So, 1 urge upon the Government~
to pay special attention in this respect, Our
area of Ghazipur and Jaunpur is surrounded
bv 17 small and big rivers and it gives a
b~rrowing look during the rainy s~a~on. The
Ganga, the Gomati and the Sal fivers are
known for causing floods. In that area,
there is a place named Ka:a~at. where .the
erosion caused by the Gomutl lS mcreaslpg.
Th Government have been approached
ma~y a time to construct a 'th()ka,~ there,
but nothing has been done so far. C~nstr~c­
tion of a bridge tbere is very eSSential
because tben the development of the area
can take place and tbe distance to reach
Azamgarh, Banaras, Jaunpur will b,e sh~rt ...
coed. So, a bridge should be constructed
tbere.
In our area, iHiaation is done from t~
141 G,rwrol Budget. 1985..86- ' MARCH 23, t 98S
General Discussion and
[Shrl Ram SamuJhawan]
Sbarda Canal. The 3S kilometre branch of
the Shard a Canal passes through my cons-
tituency but its condition is such that it is
breached here and there with the result that
the entire crops are damaged and the
farmers are not given any compensation for
the loss. Therefore, I suggest that ~he
Sharda canal be made pucca to provIde
relief to the farmers.
In the end. I we1come the balanced
Budget presented by the Finance Minister
here. I will urge upon him that taxes on
those items which affect the poor may be
reduced. By reducing the prices of kerosene
oil. petrol and diesel the farmers should be
given some relief.
With these words, I support the Budget.
DR. CHANDR1\ SHEKHAR TRI-
PATHI (Khalilabad): I support the Budget
because this is the first time when relief has
been 'provided in it to both the poor and
the rich. Just now, much criticism has been
made that the upper c1ass people have been
provided with more relief. I would like to
say that 10 to 80 per cent of the people of
India live in villages and their occupation is
agriculture. The people who are dependent
on agriculture cannot sustain themsel ves only
on alriculture. So, for the first time. relief
has been provided to both the small as well
as big the industries which will provide jobs
to the maXimum number of people. Lakbs
of persons who are engaged in agriculture,
wilt aCt employment opportunities by this
and the industrialists will get opportunities
to set up industries and in this way our
country will march towards rapid industriali-
sation. Hence, to criticise that industrialists
have been given more attention, does not
seem to be proper. Our hon. Finance
Minister bas tried to mop up the untapped
financial resources so that they arc invested
in the setting up of industries to take the
nation towards progress.
I would like to draw the attention of
the hOD. Pinance Minister particu)ary to
one point. He has raised the income tax marches ahead along with the rest
exemption limit from Rs. 15,000 to Rs.
18,000. For this, he deserves conaratulations.
But I thank this is not sufficient. This the maxi:mum )i'1lit or Rs. 20 lakhs fixed
exemption limit should be raised to Rs. in 1980 for ,oHio, up small scale jnd~tri.
Supplementary D,mands lor 148
Grants (General) 1984·8S
25,000, so that the persons who have mo~ey
but do not want to invest for fear of haVing
evaded income-tax may not have to unnece-
ssarily hunt for loans and may have an
opportunity to invest that money in indus-
tries, and hereby stand on their OWn feet
and march towards progress. I. therefore,
submit tbat this limit must be raised to Rs.
25~OOO,
To remove the regional imbalances and
to ensure tbe progress of the country, tbe
Late Pandit lawahar Lal Nehru had adopted
mixed economy for the country in which
both the private and public sectors were
given opportunitiet to set up industries. It
is true that we have made a huge investment
in the Public Sector. These are the indus-
tries having monopoly in certain items;
even then their production is not to the
desired extent, nor have they earned the
desired profits. I have no hesitation in say-
ing that in the Public Sector, the majority
of the industries are running in loss to the
tune of crores of rupees. This should be
looked into and efforts made to obViate
the losses and the people sbould also not
be burdened wi th taxes to meet the losses.
The workers in that sector have been pro-
vided with all the facilities but in spite or
this they are not increasing the production
and~ are bringing the country on the brink
of huge losses.
Many problems have been raised in th"
House relating to different States but I want
to draw the attention of the hon. Finance
Minister towards a problem which is not
related to any particular State but is related
to the entire country. No doubt, hill districts
are considered as backward keeping in view
the development of t~e country at large but
, I have no hesitation fn saying that Cachhar
area is a water-logged area of the country
and remains as such for 5 to 6 months in
a year. The people there are very poor ;
there are no schools ; drinking water i. not
avaiJable ; there arc no roads and people
are without houses. I would request the
hon. Finance Minister to set up a separate
board (or the uplift of this area so that it
or the
country.
I would also Uke to submit that although
149 C,nera/ Budget, J985-86~- CHArtRA
General Discussion and
bas been increased by the hon. Finance
Minister to Rs. 35 lakhs to encourage the
small scale industries, yet these industries
are not set up in the villages because
transport facilities are not avaiJable and
power is Qot supplied there. Therefore, the
purpose of encouraging small scale industries
in rural areas, for which this limit has been
increased from Rs. 20 )akhs to Rs. 35 lakhs,
will be achieved only when trasport and
power supply facilities are provided.
I would Jike to submit ODe thing more
and this is of national interest. In our
country, smuggling is done on a large scale.
Articles worth crOfeS of rupees are smuggled
from Nepal into India through places like
Bhairwa, Krishnanagar, Taulihawa,l& Raxaul,
adjacent to the Nepal border in collusion
with high officials. Smuggling is not going
to be stopped by the giving of rewards and
incentives. Certain effective steps should be
taken for this. I would, therefore, like to
lay that the squads constituted for this
purpose should include the M.Ps. also .... and
offenders should be punished so that tnere
is no natural loss.
The educational system in the country
should be uniform. If it is possible, a
uniform education policy should be imple-
mented.
Many hon. Members have asked for
reduction in the enhanced taxes on gas, bid is,
kerosene oil, vanaspati ghee, diesel and pet·
roleum products. I shall be grateful jf
thele enhanced imposts are reduced so that
the people of the country get relief.
SHRI RAM PUJAN PATEL (Phu)pur) :
Mr. Chairman, Sir, I am thankful to you
for living me an opportunity to speak on
the 1985.86 Budget.
The hon. Finance Minister has prepared
the Budget for 1985-86 with wisdom, care
and farsightedness and I thank him for this
and be deserves congratulations because
through this Budget all sections of the society
will be bcnetitcd. I feel however that the
farmers have been neglected, because after
loina through the entire Budget, I have not
found anytbinl which may benefit the
farmers directly. My submission is that we
sball bave to think seriously about tbe
farmers. The Finance Minister bas said in
2, 1907 (SAKA) Supple~ntllTY iHmands ISO
lor Grants (Gene,a/) 1984..85
his Budget speech that whereas for keeping
the inflation under control, curbs on expen-
diture and imaginative supply management
and timely imports have their own impor-
tance, having two successive good crops bas
also helped in this regard. Thus, the annual
rate of inflation in wholesale prices on
23rd February, 1985 was 5.2 per cent as
compared with J0.00 per cent during the
corresponding period last year. Not only
this, the consumer price index has aJso
shown an incre3se of only 4.4 Per cent in
January 1985 as compared with an increase
of J 3.7 per cent in the corresponding period
of the previous year. The farmers of the
country with their hard work have strength-
ened the country and I think the Finance
Minister should consider seriously about
giving facilities to the farmers also because
neither the prices of fertilisers have been
reduced nor any other facility provided.
On the one side, you have given a minor
relief but on the other side you have increa.
sed the prices of the petroleum products.
The farmers have neither got exemption in
tbe prices of fertiI isers and machinery nor
have they been provided with any other
reHef. In the Budget presented before us,
the only facility to the farmers is the intro.
duction of the Crop Insurance Scheme. I
want to give two suggestions to the Finance
Minister for the benefit of the farmers. Our
Budget is prepared for tbe pt;riod 1st April
to 31st March. The money due from tbe
farmers is recovered by 31st March and if
they do not pay, attachment warrants arc
issued against them. The farmen have to
sell their crops etc. very cheap. I think no
crop is ready by 31 st M arch and even if
any crOp is rcady that has to be sold at
lower rates. I, therefore, want that our
Budget should be for the period 1st July
to 30th June. The second reason for change
in the dates is that nowadays by the timo
the Budget is passed, the monSOon has
already set in. The rains continue for two to
three months. During the rainy season, the
con.~truction works come to a standstiJ).
A period of three months is taken for
passing the Budget. Thus for 6 monthl,
there is no construction work in the country.
For the remaining 6 months, engineer. and
workers do con!iltruction work and they an
asked to complete the works somehow or
other by 31st March and spend ~bc monq
before that date.
 is! (;eMfa/ Budget, 198$-86- MAR.CH 2~, 1985
General Discussion and
[Shrl Ram Pujan Pat.l)
This leads to misuiilisation of money
and constructIon work is also not done
properly. 1, therefore, request the Finance
Minister to consider my suggestion to adopt
tho period from lst July to 30th June as
tho financial year.
In our countrY, the education to girls
up to higher secondary level, i.e.. up to
higb school has been made free. For this,
tbe Finance Minister deserves congratula-
tions. It is a very important provision. My
submission is that all the children, both boys
and girls, should be given free education
up to high school, and everyone in the
country should get education uniformly ;
there should not be any disparity. It should
be taken care of that the education gap
between the rich and the poor does not go
on widening. Everyone should gct un iform
education. This was the dream of our late
Prime Minister Bini lawahar Lal Nehru.
We have resolved to eradicate puverty
from our rural scene through Integrated
Rural Development Programme, National
Rural Employment Scheme and Rural Land-
less Employment Guarantee Programme.
Unemployment is being removed by provid-
iQI money to tbe unemployed people so as
to lift them above the poverty line. I would
request the hon. Finance Minister to order
an inquiry whether the funds spent for this
purpose have actually raised the standard
of living of those living below the poverty
line. The people of the Department of
Industry in connivance with the bank officials
somehow procure these funds, but the people
who are supposed to get this money do not
let full amount. Your officials indulge in
many irregularitie~ in this reaard. I Would
request tbe hon. Minister to look into it.
As a result of bike in taxes on articles being
used by the poor, viz., beedi, paao masala,
kerosene, the prices in villages have consi-
derably risen. I request you to fe-consider
the hike in tax on tbese items including
cement and diesel.
The bon. Finance Minister has made a
J)1'Gvfslon of Rs. 10 crores in tbe Budlet to
check pol1utinn in the Ganga. This is a
co'mll1cndable step.
The money of the poor deposited In the
.Supplementary Demands lor 1~~
Grants (General) 1984-85
banks gets doubled in 6i Years, that deposi-
ted in Post Offices-gets doubled in six years,
whereas the money invested by the big
capitalists Icts doubled in five years. Thus,
the country's entire money gets accumula-
ted with the big industrialists and is not
utilised for the welfare oC the people. So,
the capital of the private sector industrialists
goes on increasing. Consequently, your
public sector would be lagging behind which
would not be in the interest of the country.
.
With these words, I thank you and
conclude.
SHRI RAMASHRAY PRASAD SINGH
(Jahanabad): Mr. Deputy Speaker, Sir, I
am grateful to you for giVing me an
opportunity to speak. It is evident from
the Budget for 1985-86 presented in this
House and from the discussion which is
going on here as also from Shri Poojary's
reply that this Budget is a deviation from
our national policy. The policy evolved by
the .new Government is a departure from
the past.
Sir, I would 1ike to ask those who claim
that this is a progressive Budget and that it
will benefit the poor whether they have gone
through the Budget and examined to what
extent it has benefited .the poor and also
what has been the quantum of benefit and
concessions to the rich and multi-milJionajres
as a result of it. That will tell you the truth
A careful scrutiny, of this Budget would
reveal whether it is in favour of the POOf
or the rich. No doubt, there are certain
things which WOuld help the poor, but on
the whole, it would do comparatively more
harm to the poor who are already facing
penury. Beetli, soda, kerosene are the items
of mass consumption and the Government
should reconsider the hike in the prices of
these commodities.
I belong to a family of farmers and the
people of ollr country mainly depend on
agriculture. 70 per cent of our people
depend on agriculture, but you have ilDored
agriculture. You can claim that YOU have
set a record in agricultural production. But
your production of J 51 million tonnes of
foodgrains in 1984-85 cannot be considered
8S stable. When thc:re is good monsoon,
the production goes up, but wheg the mqn-
SOOD tailS, the produ'ction deClines. There..
"
 i~3 Gentral budget. 1~8$-86- CI:lAITRA 2, 19()7 (SAKA.) SuppleIMntary Demands 1$4
General Discussion and. .
fore, it cannot be called stable. I can
substantiate my point by living an example.
Before 1982-83, the production was 133
million tonneS, but we had a bad monSOon
in 1983.84 leading to drought and famine
conditions in the country and consequently.
the production declined to 126 million ton-
nes. You have adopted a casual attitude
towards agriculture. I am not talking of
the entire country. There has been extensive
development in agriculture in Punjab, Har-
yana and SOme parts of Uttar Pradesh, but
Bihar, Bengal and Orissa are much back\\ard
in this regard. We still have vast fertile
land in our area, and if it is developed
properly and water is made available, it
can produce a rich harvest. Sucb land bas
been ignored. Had you developed agriculture
and increased production, you would have
controlled inflation and would not have
faced deficit. One of our hon. Members bas
said that we are exporting foodgrains and
we have become self-sufficient. Let me tell
you that in 1978 you provided 468 kilograms
of foodgrains per head but today you
provide only 438 kilograms. It shows that
the in-take per head has gone down. We
should pay attention to this aspect.
There is a scheme named' Punpun Irri-
gation Project' in our area whicb is likely
to benefit Karpi, Kurtha, Jahanabad blocks
of Gaya district and Massaudi and Dhanrua
blocks of Patna disrict. During Lok Sabha
elections, a joint photograph of Congress
(I) candidate Mahendra Singh, who is called
King Mahendra in the local area, and that
of the Chief Minister appeared in the news-
.paper with the assurance that work on this
scheme is going to be started and that the
foundation stone would be laid soon. But,
that Punpun Irrigation Project has not yet
been cleared by the Centrc. I would request
the hone Minister to approve. this project
and start work on it, so that it may brjng
prosperity to the people of these areas.
*SHRI HARIHAR SOREN (Keonjher):
Mr. Chairman, Sir, I rise to suppor.t the
Gene.ral Budget for 1985.86. The. Budget
presented by the Finance Minister is a pro-
gressive Budlet. It is the hope aDd aspira-
tion of millions of people in tbis country.
The Finance Minister is an efficient and
honest person. He has lot a strong person.
~The speech was oriainaUy delivered in Ori),a.
lor Grants (Genara/) 1984.85
ali ty. He has presented a wen structured
and balanced Budaet. Therefore, the peopJe
from all sections of the society have conara.
tulated him.
At the outset, I congratulate our Prim.
Minister Shri Itajiv Gandhi. His intention to
provide clean and efficient administration
has attracted millions of people. Therefore
he got massive manadate in the last Genera]
elections. He is determined to make tbe 20
point programme of our late Prime Minister
Shrimati Indira Gandhi a areat success.
During the time of election the Primo
Minister Shri Rajiv Gandhi had promised
the people to pass the An'tj.defeclion Bi1I.
In the first session of the 8th Lok Sabha
itself the Anti-defection Bill was passed by
Parliament. The 30th January, )985, the
date of passing the Bill, will therefore
remain as 'a memorable day in the parlia-
mentary history of Jndia. Today the whole
nation looks towards the leadership of Shri
Rajiv Gandhi.
Sir, it is a matter of great pleasure that
sreater emphasis bas been laid in the Budget
on the upliftment of rural areas. The rural
welfare schemes like National Rural Employ-
ment programme, integrated rural develop"
ment programme and rural landless employ-
ment guarantee programme are under imple.
mentation in the rural areas in different
parts of the country. As you know Sir.
India is a country of villaaes. Therefore,
when we talk of the progre~s of the nation,
we must think of the welfare and the uplift-
ment of the rural people. All the abovo
programmes are meant for raising the Status
of the rural people from below the poverty
line. I am glad that provisions ba\!c been
made in the current years budget to alleviate
poverty. It should be the main endeavour of
the politicians, Government employees and
voluntary ofaanisaUons to work unitedly for
the greater success of the rural development
programmes. The co-operation of all sections
of the people involved in irnpJementin. these
pro&rammes is very necessary to achieve tbe
main goal. It is not proper to say tbat the
people working in all spheres are honest
and sincere. There are many peOPle, involved
in implementina these proarammes' who
misappropriate and misutilise tbe ru~s
allocated for rural development. I appeal ,to
 15$ General Budge/, 198$-86- MARCH 23, 1985
G,ural Discussion and
[Shri HarJhfll' Soren]
the Government to take action against such
people. I also sugge~t the Government to
monitor the implementation of rural develop-
meat programmes from time to time. The
State Governments responsible for imple-
menting such programmes should be taken
to task if they fail to achieve the target set
for implementinl such programmes. The
real benefit should reach the people who
urgently need it. The beneficiaries lists should
be checked up and action should be taken
against the officials who prepare tbe lists if
fake beneficieries are found in the lists. All
these sllggestions, if implemented, will pro.
. vide the real benefit to the rural people and
the poverty can be removed from rural
areas.
Now I would like to say a few words
about rural water supply. Sir, there arc
many villages in Orissa and other States
where drinking water facility is not available.
The problem villages were identified during
the 6th Plan period. All States have not
fulfilled the Sixth Plan target to provide
drinking water. Therefore I request the
Government to provide potable drinking
water to the problem viUages on priority in
1985·86. At the same time I request the
hone Minister to put pressure on the State
Government to accelerate the programme to
provide potable drinking water to all the
villaaes by the end of the 7th Plan. The
country is facing many problems today. The
unemployment problem is one of those
major problems. The Government of India
should make all possible efforts to generate
more employment in the sphere of agricul.
turo and industry. The Government of
Orissa had taken a number of steps for the
growth of industry in that State during the
last five Years. A good number of industrial
units have been established in small scalo
sectors. But the number of medium and
major industries are microscopic. Therefore
there is a greater need to set up some major
industries in the State of Orissa.
While speaking on the industrialisation
io Orissa I must make the mention of a
second steel plant in that State. Sir, the
proposal to set up a steel plant at Daitari
in Orissa was taken up as many as five years
back. The aite has been selected. The steel
Supplemliltary b,mantb ior 156
Grants (G,neral) 1984.85
plant was to be located on a triangular
piece of land at Daitari in the border of
Cuttack, Keonjher and Dhenkanal districts.
The land acquisition work was on progress.
Daiteri is ideally located so far as the
establishment of steel plant is concerned.
But it is unfortunate that the construction
work of the steel plant has not been started
so far. The inordinate delay in the establi-
shment of the steel pJant has created great
discontentment among the people. The
demand for the steel plant is not confined
to a few districts of the State, but it is a
demand of the people of Orissa as a whole.
If the steel plant is established it will gO
a long way in prOviding employment to
hundreds of unemployed educated youngmen
in Orissa. As the labour water and raw
materials are easily available near the pro-
posed site selected for the location of the steel
plant, there is every justification to set up the
steel plaat at Daitari. The delay in the establi-
shment of the steel plant will result in cost
escalation. Therefore I request the Govern.
ment of India to expedite the proposal for
the establishment of steel plant at Daitari
without any further delay.
Lastly, thank you very much (or having
given me the opportunity to take part in the
discussion.
[English]
SHR( ASUTOSH LAW (Dum Dum) :
Mr. Chairman, may I congratulate the hone
Prime Minister for presenting the most
dynamic growth. oriented and rational
Budget ? I also congratulate the hone
Finance Minister on taking such bold steps
which could not be taken for the last 20
years.
The Union Budget has been opposed
and criticised by the Opposition on various
aspects. May I request them, "For the sake
of criticism or for the sake of opposition,
please don't criticise or oppose this Budget" ?
This is the only Budget in the history of
Indian Parliamentary democracy wherein
the all classes of people have been given
substantial benefit and/or relief inVOlved.
(Interruptions)
MR. CHAIRMAN : He has sot only
two or three minutes to speak. Doo't di••
turb.
157 General Budget, 1985-86- CHAITRA
General Discussion and
SHRI ASUTOSH LAW: I wiU appeal
to you that for Heaven's sake, 'once in your
life, please try to realise that this Budget is
for the country's benefit and also for the
future generation" If you think you have
suffered and our previous generation had
suffered then tet not our future generation
to suffer again. Let us do something in the
name of the people so that our future
generation will derive some resuhs out of
this Budget. This is the budget where three
sections, Le. weaker section, middle class
people and the cooperative sector, have been
given the relief.
Now, let us see what the benefits and
reliefs are given to the weaker section in the
proposed Budget. Since tim~ is very short, I
will be very brief. I f I am permitted to
clarity farmers, lower middle class peopte
and the unemployed youth under the. weaker
section of the society, you will find in the
Budget that they have been given benefits
by all means. What are the benefits ? Now
let me first consider the claims of the
workers. In the case of a company being
liquidated or wound up, previously, after
Government dues, the claims of the secured
creditors would come. Workers claims were
placed down. Now the workers wages and
claims will be paid first. Now the workers
wages have been put pari passu with the
Government's revenue. So, this is one of
the most important and substantial reliefs
liven to the workers.
The bonus limit bas been raised from Rs.
750 to Rs. 1650. That wilt benefit not only the
workers, not only the weaker section but also
the lower middle class people. More money
has been allocated for the rural development.
In the rural development sector, not only the
farmers win get the benefit but the unem-
ployed rural youth will also get the benefit.
The crop insurance scheme which has been
envisaged in this Budget is one of the most
revolutionary propositions which has n~er
been thought of and the benefit will be given
to the 'armers. Even in case, the farmer is
not in a position to pay the insurance pre-
mium, then the subsidy bas been provided.
Regardi111 the industrial policy and the
corporate sector, may I submit tbat tbe
corporate sectors have been given substan-
tial relief I think, my bon. friend. on tbe
m. 1907 (SAKA) Supplementary Demands 158
lor Grants (General) 1984-85
other side who are shouting so much wo'uld
realise if they go through the Budget care-
fully that exemptions which were previously
enjoyed by COrporate sector have been taken
away, by this Budget whereas rate of cor..
porate tax bas becn reduced. If you consider
the impact of this Budget upon the middlo
class society, yf)u will find that they wj1J be
benefitted by way of reduction of tax struc.
ture, recasting of wealth tax structure and
abolition of Death Duty and C.D.S. These
are the steps which will give substantial
benefit to the middle class people. There..
fore, it cannot be said that this Budget ,s
only for the upper middle class. This is a
Budget for all the people.
Lastly, let me say something about
proposed petroleum price hike, the keroseno
price hike and also the gas price hike, I
support this ... (Interruption). You must not
misinterpret my statement. You listen to
me. I say, if it is inevitable that the price of
petroleum products, have to be increased
then it is better to have small increase in
the price thiCl year rather having sUff
increase in the price next year which will
create more burden on the people. In any
event I request the Hon. Finance Minister
to reduce the kerosene price otherwise
weaker section will suffer. I( necessary, the
ta~ abolished on TVs, VCRs and other
luxury items may be re-imposed and intro-
duced to give such reI ief to the w~ker
section.
SHRI H.A. DORA (Srikakulam) : Mr.
Chairman, Sir, some of the hon. Members
on the other side contended that the Budaet
reflects socialism ; it invigorates the earn-
ings of a common man in the street and it
is pregnant with progress and revolution.
Tbis has al~o been previously said in the
same tenor and tone. I am at a loss to
understand as to how much dose of socialism
is imported into the Budget.
The Directive Principles of State policy
enshrined in our Constitution aimed at
socia1ism. 35 years have almost heeD com.
pleted. What is the degree of socialism that
has been brought about in this country?
Could it be visible to the naked eye applied
with a magnifying glass?
What are the a.~sets of Tata, Birta,
Singhania aDd otbers in tho year 1947 and
J.$9 06".ral BuJ~t, 1985.86- MARCH 23. 1985
G~wal Discunlo" and
[Shrl B.A. Dora]
what are their assets now? How many
persons were there below the poverty line
by 1947 ? What is the increment now given
to it in the year 1985 ?
Is it that we have achieved socialism in
our country? The Budget is revolutionary
in t be sense .that it revolves round tbe
Industrialists. The Budget spells out maxi-
mum benefits to minimum number of
people in this country. I would say :
The 1'roblettls in this country are plenty,
the Budget is based on principles twenty,
but the result is absolutely empty.
I may be permitted to say that the
hollowness of the Budget can be seen from
tbe few points which I may be permitted to
present before the House. Tbe gross annual
requirement for the year 1985-86 is Rs.
2,12,798.82 croreCJ. Tbe allocation for rural
development is only Rs. 399.95 crores, not
even a fraction of 1 per cent, not even
l/SOOth share, of the total gross annual
reqUirement for the year. May I request the
hoo. Minister to take note of the develop·
ment ill the rural areas ? There are roughly
5,75,000 villages in this country. About 80
per cent of our country's population live
in tbese vjllages and about 70 per cent of
our national income is only from the
villages. But tbe allocation of amount for
the development of villages is very me-alre,
not even 1 per cent. It is only a small
fracdon of 1 Pt"I cent. Why is this criminal
discrimination made in respect of the
villages ? May 1 say that sllch a discrimina-
tion had been made, was made, bas been
made and is also being made ? How can
the Government expect progress in this
country without rural development ?
I am ready to correct myself if I am
wrong in contending tbat the development
in rural areas is wantonly neglected. The
rural development hitherto achieved is com·
paratifely negligible.
Most of the villages in the country are
DOt provided even with earthen roads. There
is scareity of drinking water in this country,
in tbe vUlages part ;cularly .
f!ven ~% of tile vill"fes are not el~.
Suppl,mentary Demands /01' 160
Grtplt8 (G,,,,ral) 1984.85
trifled. The bon. Minister is quite aware of
the sanitary conditions in the villages. In
spite of his being aware of all these condi-
tions, the provision made towards rural
development is only a frachon of a per cent.
I am sorry to say that the Budget is not
for the people dwelling in the villages who
live in semi-permanent houses. It is only tor
those who live in mansions.
SHRI A. CHARLES (Trivandrmo, ' ) : Sir,
I am happy that I am given a chance to
speak on a Budget which has been widely
accepted and which has ushered in a new
era of greater social justice.
We have been Ii'itening to the criticisms
made by some of our friends on both sides.
It bas been criticised by the Opposition that
this Budget is pro-capitalistic, anti-rural and
is a deviation from the path of socialism
which the' country bas been following since
independence. It is also said that as persons
like Mr. Palkhivala and SOme of the news
media of the West have 'welcomed this
Budget, it must be essentially pro.capitalis-
tic. This is simply illogical. The hon. Member
in the Opposition Shri Indrajit Gupta
himself has admitted that in the course of
the discussions he had with the Minister of
Finance, he had suggested three measures
to alleviate some of the difficulties of the
middle class and the working class and that
all the three suggestions were accepted by
the hon. Minister. Does if the argument of
Shri Gupta is accepted can't we say that
this Budget is pro-socialistic since it con-
tains some of the recommendations of Shri
lndrajit Gupta ? It is real1y a strange ironY
of fact that the parties which were critici-
Sing, opposing and buIJying our late Prime
Minister Shrimati Indira Gandhi and were
bent On eliminating her from public life
during the whole tenure of her office, are
now education lamenting that the glory of
socialism has given way with her passing
away. We are thankful for this belated recog-
nition or ratber confession.
It is gratifying to Dote that our economy
is almost OD a sare footing and that there Is
an overall growth on all sections or
the
nation's Hre, may it be agricultural, indus-
trial, pOwer generation, coal producti~n or
fre'sbt lQoverri~~ br ran, CO\lp1od w'itb tbis
161 General Budget, 1985-86- CHAITRA 2, 1907 (SAKA) Supplementary DS11IQnds
General Discussion and
growth, the numerous benefits and incen-
tives DOW provided in the Budget to a wide
ranling section of the population have
instilled greater confidence in the whole
nation and has given a measure of social
security to the poorest of the poor.
The comprehensive scheme of crop
insurance, the accident insurance scheme fot'
all sections of workers who are not covered
by any scheme, the proposal to raise the
limit of income for payment of bonus, free
education of girls all over the country up to
the Higher Secondary level, enhanced retire-
ment benefits, the proposal to raise the
exemption limit for personal income tax and
to discontinue the surcharge on income tax,
abolition of the scheme of compulsory
deposits, abolition of the levy on Estate
duty, raising the limit of the monthly income
for payment of bonus to employees, top
priority given to the workers' dues in the
event of an industry being closed and a
number of other such progressive measures
arc certainly radical measures which take
the whole nation to a new era.
However, I am constrained to say that
some of the Budget proposals have added to
the strain of the middle-class and the poor.
The increase in the duty on crude petroleum
and the increase in the cost of cement will
DO doubt increase the burden of the poor
and the middle-classos. Increase in the cost
of kerosene will have to be reconsidered lest
tbe number of relief measures meant for the
common man shall be eroded in respect of
tbe poorest of the poor. So also it is tOO
early to assess the total employment poten-
tial that will be generated as a result of the
many incentives proposed to be given for
developing small-scale industries. Housing
is yet another major problem that has to be
alven top priority. So also, while those
below the poverty line in the rural areas
will be very much benefited by schemes
such as the IRDP and NREP etc. there are
DO such measurca for their ill-fated counter-
parts in the urban areas.
With a view to relieve the sufferinas of
the above secMbns of the people and to
mako the Budiet more meaningful in their
cases also. I would make tbe following
specific proposals : -
Samrat Press, 7117/18, Pahari Dhiraj. Delhi-6.
t6l
for GrtJnts (General) 1984-85
For domestic use and for genuine use of
small agriculturists, kerosene shall be distri.
buted through the public distribution system
on a subsidised rate in case it is not possible
to reduce its cost.
The proposed enhancement of COSt on
cooking gas (LPG) shall be withdrawn.
The excise duty now proposed OD cement
and soap shan also be withdrawD.
Schemes similar to tbe IRDP and NREP
shall be drawn up for the poor sections of
the urban areas also.
Steps shall be taken to ensure remunera-
tive prices for all agricultural products to
tbe farmers.
The problem of housing shOUld be liven
utmost priority. Special projects should be
"repared and implemented on a time-bound
programme for providing flats to the land-
Jess poor giving priority to the poor living
in the coastal belt and in the slums in the
urban areas.
This is a time when the whole nation is
looking forward with high hopes and aspira-
tions on the young leadership given to this
country to poineer its destinies to peace and
prosperity. The first Budget of the Eighth
Lok Sabha now before us amply proves that
the great confidence reposed on the rulio.
Party and especially on the YOUIll Prime
Minister is not misplaced. The Prime
Minister in his first message given to the
nation after his unanimous election as leader
has stated in unmistakable terms that
honesty, efficiency and time-bound prolra-
mme will be the basis of the new adminis-
tration. The first BUdget of bis Government
has amply justified these high ideals. I
would, therefore. give my unstintcd support
to the Budget with the pledge that we all
shall work together upholding the above
ideals in building up tbis great country 10
that a united India may live and prosper.
MR. CHAIRMAN: The House stands
adjourned to reassemble on Monday, March
25, 1985, at 11,00 a.m.
19.01 hrt.
The Lok Sabha then adjourned till EleN"
of th~ Clock on Monday, Morels, 25,
1985lChaitra 4, /907 (Saka).
...